abfa

Small Business Asset Financing Hits Record High

Small Business Asset Financing Hits Record High

The amount of finance raised by UK small businesses borrowing against ‘hard assets’ has risen 7% in a year to hit £3.63bn – a record high – according to a report by the Asset Based Finance Association (ABFA). The survey reports a shift in the way businesses are seeking to obtain finance, with enterprises said to be “turning their backs” on traditional lending and opting to raise cash against inventor, property and machinery instead. UK businesses secured £358m against plant and machinery this year, an increase of 37%  from £261m last year. ABFA has said that businesses are increasingly attracted to the advantages of asset based finance as it’s ‘less risky’ than overdrafts and, therefore, requires banks to hold back less capital for that kind of finance. Jeff Longhur... »

Small Firms Unaware of Government Financial Support

Small Firms Unaware of Government Financial Support

More than half of small businesses are not aware of financial schemes set up by the Government to help them, according to new research by the Asset Based Finance Association (ABFA). In its survey of more than 2,000 small businesses, 56 per cent revealed that they had not heard of the Enterprise Finance Guarantee scheme (EFG), Working Capital Guarantee Scheme or the Capital Enterprise Fund – all of which have been developed by the Government to provide financial support to small and medium-sized businesses.   Small firms struggling in the recession could be at higher risk of financial failure if they were not aware of the different initiatives available, said ABFA chief executive, Kate Sharp. “Over the last few years, the Government has stepped up to support UK small busine... »