Debtor Finance Growth Remains Strong

Debtor Finance continues to record strong growth, with total turnover for the 12 months ending September 2009 up 2.4% to $64.3 billion, a solid increase on the $62.8 billion in turnover recorded for same period the previous year. Much of this growth has been driven by demand for full service debtor finance facilities (often referred to as Factoring).

According to a new report by the Institute of Factors and Discounters, in the September 2009 quarter Factoring turnover grew 11.3% to $841 million while Discounting turnover fell 7.7% to $15.1 billion. Total debtor finance turnover for the September quarter was down 6.8% to $16 billion compared to the same quarter last year.

Commenting on the report, Rob Lamers, CEO of debtor finance specialist Oxford Funding (a division of Bendigo and Adelaide Bank Limited) said, "While turnover is down this quarter as economic conditions strengthen and businesses gain increased confidence in their debtors, the underlying growth in the adoption of debtor finance facilities remains strong."

“Our discussions with a number of industry sectors showed that assistance is still required with putting in place proper credit structures as well as help with collections processes to maintain healthy cash flows to fund growth,” said Lamers.

According to the Report wholesale trade (38%), manufacturing (21%) Property and Business Services (9%) were the top industries driving growth in debtor finance.

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About Oxford Funding

Oxford Funding, a wholly owned subsidiary of Bendigo and Adelaide Bank Limited (ASX: BEN), is a specialist provider of debtor finance or cash flow solutions to small and medium enterprises. Since its inception in 1994, the company has continued to remain at the forefront of the Australian debtor finance industry due to its flexibility, innovative product portfolio and commitment to best practice service delivery. Oxford is a member of Factors Chain International (FCI). www.oxfordfunding.com.au