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• 13 Feb

  Which Receivables Financing Products Are Most Popular

  Which Receivables Financing Products Are The Most Popular

  We wanted to address the question of which receivables financing products are the most popular.

  To find out we decided to compare search volumes and find out which products got the highest number of daily searches online.

  This gave us a proxy for which receivables financing products are the most popular.

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  Research Approach

  

  Our research approach was to use Google Trends to compare the daily searches for each of the terms that customers use.

  The Results - Most Popular Invoice Finance Products

  These are the results shown in Searches Per Day via www.google.co.uk.

  We looked back over the last 5 years before today and these were the averages:

  • 53 for "factoring"
  • 50 for "invoice finance"
  • 20 for "invoice factoring"
  • 17 for "invoice discounting"
  • 14 for "debt factoring"
  • 11 for "invoice financing"
  • 4 for "receivables finance"
  • 3 for "receivables financing"

  Most Searched Financing Products

  This shows that the most searched product was "factoring". However, a note of caution. There is also a mathematical use of this term and it is likely that much of that search traffic is related to that. However, it's not possible to make a distinction between these figures. When you search "invoice factoring" you will see in the results above that the volume is much lower.

  The most striking revelation is how high the search volume is for "invoice finance" and "invoice financing". Historically, these terms were much less used in the UK. Combined they account for 61 daily searches.

  Receivables finance/financing received very few searches in the UK, this term may be much more prevalent in the USA, however, it is little used in the UK. Indeed if you search the United States results they have 2.5 times the volume per day for those terms.

  Historic Search Results

  With an innovative approach using Google Trends data over the past five years, we uncover which receivables financing products have captivated the interest of the UK market.

  Compare these results with our historic search of similar terms.

  The Power of Receivables Financing

  Receivables financing, an umbrella term for various financing options that allow businesses to fund themselves using outstanding invoices as security, offers a lifeline to companies needing immediate capital. It encompasses products such as factoring, invoice finance, invoice discounting, and more. Each product serves the same fundamental purpose but differs in operation, costs, and suitability for different business models.

  Unveiling the Trends: A Google Trends Analysis

  Our research methodology involved analysing daily search volumes for key receivables financing terms on Google.co.uk, aiming to gauge their popularity and, by extension, their acceptance and usage within the UK business landscape. The findings offer a fascinating glimpse into the preferences and trends within the sector.

  Factoring Dominates: Topping the list with an average of 53 searches per day, factoring stands out as the most searched-for product. However, it's important to note the potential skewing of data due to the term's mathematical significance, suggesting that not all searches are finance-related.

  The Rise of Invoice Finance: Close behind, with 50 daily searches, is "invoice finance," a term historically less utilised in the UK. Its growing search volume signals an increasing awareness and acceptance among UK businesses seeking flexible funding solutions.

  Emerging Preferences: Other terms like "invoice factoring," "invoice discounting," and "debt factoring" show considerable search activity, indicating a healthy interest in varied receivables financing options. However, "invoice financing," "receivables finance," and "receivables financing" lag in popularity, suggesting regional preferences in terminology and product awareness.

  Interpretations and Implications

  This analysis highlights the dynamic preferences within the UK's receivables financing landscape. The significant search volume for "invoice finance" and its variants reflects a shift towards more transparent, flexible financing solutions such as these.

  The disparity in search volumes for terms like "receivables finance" versus "factoring" or "invoice finance" hints at a regional variation in terminology preference. While "receivables finance" may be prevalent in the US, UK businesses and financiers seem to favour "invoice finance" and its derivatives.

  Strategic Insights for UK Businesses

  Understanding these trends is crucial for UK companies considering receivables financing as a liquidity solution. The popularity of terms such as "factoring" and "invoice finance" underscores the need for businesses to familiarise themselves with these options, evaluating their features, benefits, and suitability for their specific needs.

  Moreover, the evolving search trends suggest that businesses are increasingly seeking out alternative financing solutions, likely driven by the need for more flexible, accessible funding sources than traditional bank financing offers.

  The landscape of receivables financing in the UK is rich and varied, with different products catering to diverse business needs. This Google Trends analysis provides a snapshot of the current preferences and trends, offering valuable insights for businesses navigating their financing options. As the market continues to evolve, staying informed and adaptable will be key for companies looking to leverage their receivables for financial health and growth.

  By Glenn Blackman