The Chief Exec of ABFA (Asset Based Finance Association) Jeff Longhurst has reported that the total of asset based finance advanced hit £20.7bn at the end of September 2016, a 4% growth over the last year.
ABFA commented that this fast growing form of alternative finance is playing an important role in filling the funding gap for UK businesses, especially as economic uncertainty from the Brexit referendum continues. It offers businesses the opportunity to diversify their sources of finance away from more traditional loans and overdrafts.
They go on to say, that businesses of all sizes are realising the opportunities in leveraging assets that can provide a continued source of working capital. Awareness of asset based finance continues to grow and initiatives such as the launch of the Government’s Bank Referral Scheme (including asset based finance) can only fuel this growth. The scheme means that nine of the UK’s biggest banks will be required to pass on the details of businesses who they are not able to support onto three platforms where ’alternative’ sources of finance can be offered.
ABFA’s statistics (collected from its 42 members, including Factor 21) show that the total amount of asset based lending and invoice finance secured by UK businesses reached a new record high of £20.7 billion in 2106. Around 80% of this figure is invoice finance, while the other 20% represents asset based lending.
For more information on invoice finance and how Factor 21 might be able to help your business, contact us on 01491 824 993.
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eCapital Corp. is committed to supporting small and middle-market companies in the United States, Canada, and the UK by accelerating their access to capital through financial solutions like invoice factoring, factoring lines of credit, asset-based lending and equipment financing. Headquartered in Miami, Florida, eCapital is an innovative leader in providing flexible, customized cash flow to businesses. For more information about eCapital, visit eCapital.com.
