The Untapped Pool Of Invoice Financing Prospects

As part of our ongoing investigation into the relatively small number of invoice finance users in the UK and recent reductions in client numbers, we wanted to find out which of these companies were most actively contacting prospective customers, regarding their financing.

To do this we selected a sample of 100 SME businesses which were all of an appropriate size and within industry sectors that would be suitable for invoice finance. They were contacted and asked which companies had contacted them during the last 12 months, in order to promote their services.

82% of the businesses questioned said that they had not heard from any invoice finance companies over the last year. It seems little surprise that client numbers have contracted when such a large number of target customers appear untapped.

That leaves the 18% of businesses that had been approached by such a company. We asked them to name the company that had contacted them and the results were as follows:

11% Bank owned invoice financiers
4% An independent finance company (only 1 was mentioned)
3% An invoice finance brokerage (only 1 was mentioned)

Of the respondents that said they were contacted by a bank, four different banks were mentioned. However, only one respondent said that it was not their own bank that had contacted them.

The implications are that the banks with financing arms appear to be the most active in terms of contacting prospective customers and they also appear focused on their existing banking customers.

Only one of the independent invoice finance companies appeared in the results, accounting for 4% of the responses.

The opportunities appear the greatest amongst the 82% of respondents that said they had not been contacted by any invoice finance companies in the last year. This untapped pool of invoice finance prospects is also likely to be subject to lower levels of competition from other providers.

Home Loans For You

Any loan taken in which you offer your home as a security is called as a home loan. In this type of mortgage, the security is the equity of your house. In case you default on the loan, the lender will use the equity of your house to realize the loan. Nearly loans of a million dollars or more can be easily availed using home loans.

What are the uses of home loans?

These loans are taken for a wide variety of purposes. The most common reason why loans are taken is to purchase the house itself which is offered as a security. Other reasons why a home loan may be taken are listed below.

1. Money may be required to pour capital into a new business set up.

2. Money may be required for the remodeling of a house or improving the look of the house.

3. Cash may be necessary for debt consolidation.

4. It may also be required for mortgages and

5. Many other purposes.

How is the Loan to Value in home loan market?

There is a lot of hectic activity in the home loan market in the recent past. This has led to plenty of modifications in this market. The main action the lenders have taken is to minimize the amount of loan and the loan to value (LTV) ratio.

Though certain financial institutions have not reduced their high loan to value (LTV) ratio, they have still tightened their procedures for home loan. Therefore, it is very tough now to get a home loan at a very low rate of interest.

How can you make sure you get a home loan?

Anyone who is occupied with a constantly paying employment will not find it tough to avail a home loan. This is because financial institutions feel safe and secure to lend money to you. However, if this is not the case and you work from home as a self employed person, then the lenders may consider it risky to lend money to you. This is because you do not have a constant flow of money. Therefore, they may be hesitant to lend money to you itself, leave alone offering you low rates of interest.