There has been a spike among businesses availing of invoice financing, a financing option with a revolving line of credit against unpaid invoices, as a way to improve business cashflow.
One invoice financing provider, OptiPay, has reported that it provided over $25 million in financing since the start of this year, a near ten-fold increase in new client take-ons.
“We’ve had a huge spike in broker-driven enquiries as access to capital becomes more difficult for many businesses,” OptiPay CEO Angus Sedgwick said. “Banks are becoming more risk-averse in the current climate and it’s forcing many businesses to look at alternatives to maintaining their cashflow.”
