Asset Based Finance Association (ABFA)

Asset-Based Funding to UK Businesses Hits Record High

Asset-Based Funding to UK Businesses Hits Record High

Asset-based lending to small and medium businesses in the UK and Ireland hit a record £20bn – up 4% from last year’s £19.3bn – according to a report by the Asset Based Finance Association (ABFA). While the number of firms raising finance against assets such as inventory, property, and intellectual property has grown, invoice finance remains the most popular option; accounting for 80% of the total amount of asset-based investment secured. According to the ASFA’s report, this growth in asset-based finance comes from the increase in the number of firms borrowing against unpaid invoices, which frees up cashflow and involves less ongoing restrictions than lending against ‘traditional’ products. Overall, asset-based and invoice finance has experienced a year-on-year increase of approximately 4% ... »

UK Small Businesses Owed £67bn Due to Late Payments

UK Small Businesses Owed £67bn Due to Late Payments

Britain’s small and medium businesses are owed a staggering £67.4bn in unpaid invoices, up by 8% from 2014’s £62.5bn figure and 34% from 2011’s £49.5bn, according to research by the Asset Based Finance Association (ABFA). Additional research from the group revealed that businesses’ wait times had also increased, with small and medium firms reporting an average wait time of 72 days – 11 days longer than in 2009 at the peak of the recession. According to the ABFA’s study, which featured 180,000 businesses, companies in the manufacturing and construction industries are the most affected by late paying customers with an estimated £13.4bn and £7bn owed to businesses in each corresponding sector. The report noted that while late payment problems continue to cause issues for small firms, more com... »