Our market research survey of 100 existing invoice finance users found that on average they had used 2.14 different invoice finance companies during their life as a client. We found that the fewest number of providers used by our sample was 2 and the highest reported was 4. Only 11% of our sample had used more than 2 providers making 2 the norm.
I reported previously that the average usage of invoice finance had been for 5.28 years but that could be across several providers. This makes the average client life with a single invoice finance company 2.47 years – still, a significant period of time which I suspect is closer to the average client life that will be familiar to the invoice finance industry.
These results suggest several things:
- The use of invoice finance tends to be medium-term rather than short term
- Clients tend to move between providers at least once during their client life
I have further results to publish that will break down the reasons for moving between invoice finance companies. These will follow shortly.