Business Finance Research Findings Findings To May 2016
These are some of the key headlines drawn from our business finance research programme, so far to date:
Invoice Finance
Key findings:
- 98% of existing users would recommend invoice finance (May 2015).
- 78% of users have not checked their price in the last year despite which 64% want a price reduction.
- 96% of existing users think greater use of IF would improve the UK's late payment culture (October 2015).
- 87% of existing users say invoice finance enabled their business growth.
- The average client life is 5.28 years during which they use 2.14 different providers (mainly for a cheaper deal 42.4% - March 2014).
- 45% more satisfied using independent providers than those owned by high street banks.
- 88% had overdrafts representing 2.6% of their debtor book (on average) against 42% ABFA funding levels at the time (2011).
- 50% reported reductions or removal of their overdraft.
- 7 times higher awareness of payday loans, and 6.4 times higher awareness of crowdfunding, than IF (January 2016).
- 47% of users haven't seen any IF advertising - most have only seen email advertising (May 2015).
- 63% want to fund all invoices, 37% want selective invoice finance (May 2013).
- 61% want funding from 1 party, 39% prefer an eBay style auction.
- Cost is the biggest barrier to using IF (51%) low awareness is the second (21%) (February 2015).
New Startups
- 31% couldn't raise all the finance they needed (2013).
- 96% didn't consider IF as most hadn't heard of it or didn't know it was an option.
Fast Growth Businesses
- 0.85% of UK businesses use IF, 12% of fast growers (20%+ pa) and 52% of maximum growers (January 2014).
- 59% couldn't raise all the finance that they needed (2013).
- 68% of existing users would recommend IF to fast-growing companies (October 2015).
Construction Finance
- 75% raise applications for payment, and 25% raise sales invoices (2013).
- 85% of those raising applications would benefit from payment immediately.
- 2% use construction finance - 42% of those that don't, have never heard of it.
Sources: These are shown in the links above. If none is shown refer to the link above that point.
