Average Business Loan Represents Just 4.7% Of Sales Ledger

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Posted by Glenn on November 9th, 2010 in 1 - Invoice Finance, Research

In our SME survey we asked SME businesses if they had business loans and if so what percentage it represented of their outstanding sales ledger. Of the 7% that had a business loan, the average value represented only 4.7% of their outstanding sales ledger.

This figure is much lower than that for invoice finance, which can be an alternative to getting a business loan. Recent figures from the ABFA showed that the ratio of pure invoice finance funding to debtor outstandings was 42%.