Economic performance key to invoice finance growth

Research by Equiniti looking at the economy and funding markets from 2014 onwards shows demand for invoice finance rising and falling in line with GDP. Slowing GDP is reflected in reduced invoice finance demand.

Aaron Hughes, managing director at Equiniti Riskfactor, said: “Invoice finance continues to be the preferred method of business lending for SMEs in the UK, outstripping overdraft lending.

“The confidence of businesses to borrow is closely tied to the economic performance of the country. Small to medium businesses will continue to strive for growth as long as GDP continues on an upward curve.

“It raises the worry that, should the UK suffer as a result of Brexit or any other macroeconomic downturn, SMEs will batten down the hatches, stop borrowing and run into difficulty as a result.”

Equiniti is a specialist outsourcer delivering services to major brands including the majority of FTSE 100 companies.

Quarterly UK Pure Invoice Finance and GDP Growth