Factoring continues to grow in UK

SME Statistics and Factoring
Statistics recently released by the UK factoring industry’s trade association show the continued growth in the receivables finance market in the UK with 43,000 companies using factoring or invoice discounting at 31st December 2005 and generating a combined turnover in excess of £160billion on an annualised basis.

This steady increase in factoring and invoice discounting is the reverse of the traditional bank overdraft lending which seems to be in decline as the banks continue to lose interest in lending to the SME sector.

What do you think?