Following the 2008/2009 global financial crisis, businesses at home and abroad increased their use of invoice finance as a critical tool in managing cash flow. The Irish Asset and Invoice Finance Association recently commented that we should expect a similar trend as businesses emerge from the COVID-19 lockdown.
Recent Irish case law has provided significant legal certainty for invoice finance in Ireland. Consequently, the industry is well placed to support Irish businesses and to grow in the difficult months ahead. The absence of state support for credit insurance presents an immediate problem, not just for invoice finance providers, but for Irish businesses generally. However, we believe it is reasonable to expect positive developments on this issue in the short term. Other possible developments, such as the introduction of legislation to deal with ban on assignment provisions in customer contracts, would be a welcome boost but are likely to be longer term initiatives.
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Contributed by David Rogan