KPMG: invoice trading is the fastest growing alternative finance model in Asia-Pacific, ex-China

Asia-Pacific Alternative Finance Benchmarking Report, March 2016

Marketplace/peer-to-peer business lending accounted for the majority of the overall business finance volume in 2015 with $355.5m. The alternative finance model with the highest rate of growth in the Asia-Pacific region, excluding China, was invoice trading, with volume growing to $117m in 2015 from zero in 2013. 

Balance sheet lending and invoice trading activities are predominantly based in Australia in our survey sample, and we expect these models to become more prevalent in other Asia-Pacific markets in the future as businesses seek new methods of reducing the cost of receivables and improve their cash-flow position. Popular sectors for lenders within the invoice trading space were Agriculture and Transport, while the balance sheet business lending platforms reported that firms in the Food and Drink industry were the most common group of borrowers.

 

The research was conducted by the Cambridge Centre for Alternative Finance at the University of Cambridge, the Tsinghua University Graduate School at Shenzhen and the University of Sydney Business School, in collaboration with KPMG and with the support of ACCA and CME Group Foundation.