Western Australian businesses borrowed $1.5 billion against their receivables in the December quarter, up over 15 per cent from the prior corresponding period.
According to the latest Debtor Finance quarterly report, the Institute of Finance and Discounters found that the wholesale trade industry was the biggest user with 39 per cent.
The manufacturing industry was also a big user with 22 per cent.
"The rapid growth of the industry has been driven by a variety of elements including lengthening debtors' days, difficulty accessing credit and an increase in the number of medium-to-large corporations with annual turnovers of $250 million and more using this form of finance," RFD chairman Brendan Green said.
"Receivables finance is being applied across a variety of circumstances including funding organic business growth, lengthening debtor's days and to fund big ticket business events such as management buyouts, partner buyouts, acquisition of competitors or complimentary businesses, refinancing parent company loans as well as funding new product and business lines."
New South Wales businesses accounted for the largest portion of borrowings for the
period with $6.1 billion followed by Victoria $5.8 billion and Queensland $3.1 billion.
Mr Green expects debtor finance to top the $70 billion turnover mark in turnover in 2009.
