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Debtor finance market steady

30 November 2015 4:30PM
Business ticked over with no growth in the debtor finance market during the September 2015 quarter but there may be interesting times ahead, with the entry of a new marketplace lender in the sector this year.According to the latest figures from the Debtor and Invoice Finance Association of Australia and New Zealand, sector turnover for the September quarter was A$15.8 billion - unchanged from the June quarter and 1.8 per cent higher than the September quarter last year.In the 12 months to September, finance companies provided $64.2 billion of debtor finance to businesses - an increase of 3.4 per cent over the previous corresponding period.Invoice discounting, where the seller of the trade debts retains the accounting and debt collection functions, accounted for the bulk of the turnover. Invoice discounting turnover for the September quarter was $14.5 billion, compared with $14.6 billion in the June quarter and $14.4 billion in the September quarter last year.Factoring, where the finance company takes over the accounting and debt collection, accounted for $1.3 billion of annual turnover in the September quarter, compared with $1.2 billion in the June quarter and $1.2 billion in the September quarter last year.Client numbers were down from 4275 in the June quarter to 4175 in the September quarter. One interesting development in the sector this year was the entry of a marketplace lender, FundX. While most new P2P and marketplace lenders are operating in the unsecured personal loan market, FundX is a specialist invoice discounter, offering finance based on the value of outstanding invoices. Funding decisions are based on an evaluation of real-time trading information fed through accounting services such as Xero and MYOB. The company, which is still in its start-up phase, received an injection of funds in October when Collaborate Corp bought a stake.

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