Grow announces record increase in trade / invoice finance

Leading non-bank business lender Grow Finance today announces a record increase in its trade and invoice finance facilities, with a 57% month-on-month rise (June – July, 2022). The Group attributes this spike to an increase in broker uptake fused with strong market conditions driving demand for such financing structures.

“There’s a notable shift in businesses being more receptive to trade and invoice finance to support their cash conversion cycle. This is compounded by the fact that the facilities are linked to the specific asset being financed, as opposed to the requirement of tangible security – which most other financing facilities require. Consequently, more and more businesses are adopting the debt structures as they provide much more flexibility and clarity when managing their working capital finance,” said David Verschoor, Co-CEO, Grow.

Growth sectors for both facilities include health and personal care services, transport and logistics, manufacturing and fast-moving consumable products (including food).

“For example, we recently had a retailer that imports stock from an overseas manufacturer that had to pay for the goods upon shipment. They’re now utilising trade finance to acquire and hold inventory until it is liquidated via sales in lieu of supplier credit,” said Co-CEO, Greg Woszczalski.

In addition, many businesses are using invoice finance to smooth out cash flow gaps from slow payers or customers requiring extended credit terms to support business growth. “The appeal is that as the turnover increases, so does the invoice finance facility as it complements each other being part of the security on offer,” Woszczalski continued.

It is expected that both facilities will continue to escalate as COVID and global macro-economic factors have placed the spotlight on how important it is to strategically manage working capital and have alternate financing options available to mitigate against sustained challenges and headwinds.

“Growth in both sectors will be sustained by supporting brokers via national BDM presence, progressive team extension, product enhancements and careful credit management,” Verschoor concluded.

Grow is increasingly being recognised as the ‘non-bank of choice’ for business by being the primary financier for SMEs’ cash flow needs, including business loans plus asset, trade, invoice, floorplan, and insurance premium finance. Grow was recognised as the #1 fastest-growing company in the 2021 AFR Fast 100! and was recently received the # 1 Australian and #8 Asia-Pacific high-growth company in the 2022 Financial Times: Asia-Pacific high-growth ranking.