Information Centre

Factoring & Invoice Discounting Market in Northern Europe

Key findings

• 86% of factoring companies are predicted to offer invoice discounting by 2007.
• 71% of users of factoring services are motivated predominantly by the need for non-bank finance, rather than the need to outsource collections.
• Confidentiality is of significant importance – receiving a rating 7.5 out of 10 when respondents were queried why companies are increasingly attracted to invoice discounting.
• The proportion of factors and invoice discounters utilising technology to report on “invoice level payment performance” is set to rise from 59% to 83% over the next two years.
• The industry is seeking technology solutions that will enable automated exception management to identify problematic transactions requiring prompt resolution.
• 77% of the factoring and invoice discounting industry requires technological investment between now and 2007 to allow companies to safely extend their businesses through more effective risk management, automated bad debt modelling escalation, and pro-active fraud prevention.
• 23% of respondents are principally looking to technology to deliver economies of scale and enhanced profitability in their current business.
• 20% of the factoring and invoice discounting industry intends to securitise some proportion of its invoice portfolio over the next two years, with the aim of reducing refinancing costs.