Limited access to credit and higher demand for more flexibility have drawn more consumers to the Invoice Discounting industry over the past five years. As a result of these trends, the industry has fared favorably well during the five-year period. However, external competition is expected to halt revenue growth over the next five years. Demand for short-term solutions to manage cash flow and working capital is expected to decline. Moreover, an increase in the prime rate is also expected to boost net interest profit margins for banks, which is expected to stimulate lending activity further, hurting the industry.
This industry provides short-term financing in exchange of business invoices or accounts receivables. Operators mainly generate revenue through factors fees or through the difference between the price paid for the invoice and the money received from debtors.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
General Electric Capital Corp.