Invoice finance is a way for businesses to unlock the capital tied up in their outstanding invoices. You can get paid immediately, rather than waiting for 30+ days for your customers to pay. This allows you to turn your outstanding invoices into an immediate cash flow boost.
Most of the clients recommend Invoice Finance/ factoring/ forfaiting to businesses that needed help paying their VAT bills. VAT is payable to the govt irrespective of your collection period. The fines are hefty for delays in VAT payment.
The high proportion of invoice finance users within the manufacturing sector is not surprising when you consider the above points.
Invoice discounting, factoring and forfaiting provides a very useful product for very specific circumstances for a business.