The Irish Asset and Invoice Finance Association (IAIFA) is the representative body for the Invoice Finance and asset-based lending industry in Ireland.
The organisation provides a collective voice for the industry, promoting the wider benefits of invoice and asset based lending solutions and ensuring that appropriate standards are upheld across all members. The organisation is also a source of information for those wanting to know more about the industry’s products and services.
Invoice Finance (IF) essentially offers businesses immediate access to funds outstanding from their unpaid sales invoices, making income they have already earned, but not yet received, available to them. As well as offering businesses the option of using their own funds to improve day to day or seasonal cashflow fluctuations, many companies are now using the facility to finance other growth plans such as investing in infrastructure or equipment, Merger & Acquisition activity, MBO’s and MBI’s, sustainability activity or exploring new markets
Chairperson (IF Group): David Avery, Head of CommercialFinance at AIB
Vice Chairperson (IF Group) : Mark O’Rourke, Managing Director of Bibby Financial Services Ireland
There are two basic types of asset-based finance:
The two main types of Invoice Finance are invoice discounting and factoring. Both allow businesses to release the funds tied up in their debtor books. In both, the finance provider will normally purchase the client’s outstanding invoices, providing an immediate initial payment of the majority of the invoice, with the remainder (less the financier’s fees) paid to the client on payment by the debtor.
Factoring incorporates an added service element, with the financier normally managing the credit control and collections process. This makes it particularly suitable for smaller businesses. Invoice discounting is usually offered on a confidential basis with the client continuing to manage its own credit control. The majority of the funding currently provided by the industry in Ireland is through Invoice Finance facilities.
A wide variety of sectors in Ireland utilise Invoice Finance, including Manufacturing, Distribution, Services, Transport, Retail and Construction, indicating the diversity in the types of businesses being supported by Invoice Finance.
An asset-based lending facility will provide a broader mix of funding including revolving and amortising structures against the entire range of business assets. Traditionally advances are available against invoices, inventory, property, plant and machinery, but can be arranged against intangible assets such as brands and forward income streams.
The IFHA’s vision is to be the acknowledged and trusted representative body for the business and consumer finance industries.
Our mission is to represent our members’ interests to government, regulators ,the European institutions, the media and the public to improve the working environment in which our members do business. In line with this vision and mission, our strategic objectives are to:
Ensure that the benefits of a thriving asset finance, motor finance and consumer; credit industry are fully understood and appreciated by individual and business customers alike.
Influence government regulators and the media to reduce the cost and burden of regulation on the industry and its customers;
Ensure the industry is subject to a fair system of direct and indirect taxation to support a healthy business environment;
Be the definitive centre of competence and influence on key industry issues, as well as a forum for the exchange of thoughts and ideas.
