Debtor Finance reaches 10 year high in September quarter 2010
The latest figures from the Institute for Factors and Discounters have revealed a 6.3% increase in factoring turnover for the September 2010 quarter when compared to the same quarter in 2009, and reaching the highest level in over ten years. Factoring receivables also experienced an increase, up 3.6% from the September quarter in 2009.
WA experienced the most growth during the quarter with a 28% increase in factoring turnover compared to the September quarter of 2009. VIC also saw an increase of 14% for the September quarter. The Manufacturing sector again led factoring turnover for this quarter with 25%, while Labour Hire had 23% and Wholesale Trade 18%. In contrast, Invoice Discounting volumes were down 6.7% reflecting the drop in turnover resulting from conditions stemming from the GFC and the continued tight lending conditions in the banking sector at present.
Overall there was a healthy increase in turnover in the September quarter 2010 relative to September quarter 2009 as well as an increase in total annual turnover. These strong figures are due in part to stronger business confidence and conditions within the segment. Despite continued tough and uncertain trading conditions and continued difficulties for SMEs in accessing business credit, Debtor Finance and Bibby Financial Services has continued to support small business with its fast and flexible funding solutions