Asset-Based Finance; asset-based funding; alternative finance

Use of Asset-Based Finance Reaches New Peak as UK Firms Look to Fund Growth

UK businesses obtained an all-time high of £19.4bn in asset-based funding in 2014, up by £1.6bn from 2013 More firms are looking to asset-based funding providers to help finance growth than ever, with £19.4bn secured by UK firms in the last three months of 2014, increasing from £17.8bn in the previous period in 2013. According to research by the Asset Based Finance Association (ABFA), there is also an additional £20.5bn of unused facilities, which businesses can tap into if necessary. The ABFA consider the overall increase in asset-based funding, 80% of which is invoice finance (finance secured against unpaid invoices), a positive indication that more firms are using this type of finance to fund growth rather than merely replacing bank finance, which it was more traditionally used for. Thi... »