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• 27 Feb

  Have you been turned down for invoice finance as you are not a home owner?

  We have recently seen a slightly concerning rise in the number of invoice finance, factoring and invoice discounting companies that are asking for clients to be home owners in order to receive funding from invoice finance. It would be understandable if a client was required to be a homeowner if the credit were particularly risky and the finance company were looking to this kind of additional security in order to finance a particularly marginal deal. However, this is not the issue here. What we're seeing, in some cases, is the requirement for homeownership becoming the norm rather than relying upon the strength of the receivables in order to secure the invoice finance. This trend is even more surprising when you consider that the majority of invoice finance companies that we speak to say that recent invoice finance client bad debt performance has been good hence they are not experiencing significant losses from client failures. This situation would lead you to expect that they would be relaxing the criteria for becoming an invoice financing client rather than tightening it up with this extra level of security being required. The good news is that not all invoice finance companies are following this path. There are still plenty of invoice finance companies out there that do not require you to be a homeowner in order to access invoice finance and we can put you in touch with those if required.

  By Glenn Blackman