Oxford Funding points to growth in debtor finance
Debtor finance in Australia is growing as businesses feel the pinch from factors such as higher wages and the stronger Australian dollar, according to Oxford Funding.
Oxford Funding head of debtor finance Rob Lamers pointed to the latest Institute of Factors and Discounters (IFD) statistics revealing total Australian debtor finance turnover in the December 2011 quarter was $16.3 billion – a four per cent increase over the preceding September 2011 quarter.
He pointed out that, by comparison, total business credit is rising more slowly than debtor finance, with recent Reserve Bank statistics showing that business credit increased by just 1.4 per cent over the year to January 2011.
Lamers said the growth in debtor finance, particularly in the small to medium enterprise sector, was being driven by an increasing number of businesses looking for a more efficient way to manage their cashflow.
“Factors such as economic pressure from the continued strength of the Australian dollar, high wage costs and interest rates are putting strain on the cashflow of many businesses,” he said.
“Additionally, property assets are not increasing as much as they have historically, so alternatives such as debtor finance – which is not secured by property but by a business’s assets – become more viable,” Lamers said.
Oxford Funding is a wholly-owned debtor finance subsidiary of Bendigo and Adelaide Bank .
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
