Industry grows strongly in December quarter 2010, Factoring reaches record level
The latest figures from the Institute for Factors and Discounters show an increase of 7.4% for total debtor financing turnover in the December 2010 quarter relative to September 2010 despite a decrease of 2.9% when compared to December 2009. Whilst Discounting receivables kept steady from December 2010 to the current period, Factoring receivables experienced an increase of 9.2%. Factoring turnover reaches a historically high level, funding $3.5bn for the 12 months to December 2010.
Similar to the previous quarter, WA saw the most growth in factoring turnover with a substantial increase of 33.9% compared to the December 2009 quarter; VIC also saw a further increase of 17.1% for the same period. By comparison, discounting turnover increased 11.6% in WA over the year period to December 2010 and this increase was mirrored in NSW/ACT at a slightly lower 7.4%.
Labour hire led factoring turnover in this period with 27%, closely followed by Manufacturing at 23% where last quarter the sectors positions were reversed. Wholesale Trade led invoice discounting with over a third at 34% with manufacturing at 19% and labour hire 12%.
These figures point to the continuing take up of Debtor Finance amongst Australian SMEs. The industry is expected to remain expansionary in 2011, driven by continued growth in the mining industry, the high value of the Australian dollar and the strengthening labour market.
Posted on 15 March 2011