Glenn Blackman of Cashflow Acceleration’s recent survey of 100 SMEs (small and medium sized enterprises) indicated that 27% of SMEs believe invoice finance could be more well known amongst businesses, were it advertised by banks. 

“Much of our historic research has suggested that one of the key issues for the invoice finance industry is that invoice finance, factoring and invoice discounting are not well known or understood by businesses.

“This prompted us to ask a sample of 100 SMEs businesses (Small and Medium Sized Enterprises) the following question: ‘Our research suggests that invoice finance is not well known amongst businesses, how would you suggest this could be best addressed?’

“The answers given to this question were as follows:

• 27% Bank to advertise it as part of banking packages and bank offers
• 25% Accountants to promote it
• 18% Advertising in business start up magazines
• 9% Telesales
• 6% TV advertising
• 5% Radio advertising
• 3% Mailshots
• 2% Networking
• 2% Companies House recommending invoice finance
• 2% HMRC recommending invoice finance
• 1% The employers pack to feature an article about invoice finance

“An initial review of these results suggests that promotion via banks and accountants is most widely considered to be the best way of growing awareness of invoice finance. However, some 43% of the above answers are purely methods of marketing, advocated by the respondents.

“Perhaps the most interesting, and possibly overlooked, segment of these results comes from the 5% of respondents that have recommended some kind of government backed promotion i.e. Companies House recommending invoice finance, the employers pack featuring an article or HMRC recommending it.

“There is also an interesting thread from the 18% of respondents that recommend advertising in business start up magazines. If at this early stage in a business’ development invoice finance were to be promoted and recommended as a main stream solution to funding requirements, these products might be able to assist a greater percentage of businesses.

“In summary, whilst at face value these results may seem to suggest a variety of disparate marketing activities, there are some interesting ideas buried in the detail of these results. For example, a government backed promotion of invoice finance, perhaps to start up businesses or even via the key parties that businesses turn to for advice, such as accountants and banks, could yield significant results. This could have a huge impact on the number of UK businesses that could be helped using these flexible funding solutions.”

Glenn Blackman

Article contributed by Glenn Blackman MBA MCIM, Managing Director of Cashflow Acceleration Limited, a specialist invoice finance brokerage. Glenn also writes regarding invoice finance and related matters at http://www.glennblackman.co.uk/