Bank of Ireland reports huge growth in Invoice Finance

The popularity of invoice finance as a financing option has continued to grow in Ireland as industry turnover hit a record level of €1.073 billion, according to the latest figures from The Factors and Discounters Association (FDA). This indicates an almost 25% increase from March 2004. Invoice Finance is an alternative form of working capital finance that allows businesses to convert trade debts into cash.

According to Derek McDermott, Head of Invoice Finance at Bank of Ireland Finance, 'Invoice Finance is one of the fastest growing sources of funding for Irish businesses and Bank of Ireland has long been the largest provider with 33% of the total market share. One of the key drivers of this growth in popularity has been its increased use in leveraged buyouts, MBOs and acquisitions'.

While the largest growth in the usage of invoice finance was amongst the manufacturing sector, which grew by 14% in this period, by far the majority of users of this form of finance are in the distribution sector. This sector includes everything from steel, timber and building supplies to food, wine, computer components and furniture.

'Customers increasingly recognise the benefits that invoice finance provides to growing companies. Existing facilities continue to increase in line with our clients' growth, one of the fundamental advantages of this type of finance. With the economy growing by about 6% in 2004 and the outlook remaining positive for 2005, I'm predicting another good year for the invoice finance industry for this very reason', concluded Derek McDermott.

Ends.

For further information contact:
Dermot Nolan
Head of Business Marketing
Bank of Ireland
Tel: 01 6043349
Mob: 086 2429167

Mary Brennan
Group Corporate Communications
Bank of Ireland
Tel: 01 6043838
Mob: 087 2833646