£711m lent to UK small businesses in invoice finance
Invoice lending now "one of the primary ways" small companies access funding with average of £52,000 raised per business
Invoice finance is going a long way to helping small businesses across the UK fund their growth, according to research by the Asset Based Finance Association (ABFA) published today.
The ABFA reports that, for the period January to March 2016, £711m was lent to small firms (those with turnover of less than £500,00) with an average of £52,000 raised per business.
This is a 60% increase on the £485m raised in invoice finance by small enterprises in the first quarter of 2015.
When it comes to asset finance, the ABFA claims that approximately 80% is invoice finance as businesses increasingly look to unlock cash and grow their businesses from unpaid invoices.
Jeff Longhurst, the ABFA chief executive, believes “invoice finance is now one of the primary ways that small businesses access funding”:
“We are seeing a growing appetite amongst small and medium enterprises to secure funding through this route with businesses securing ever increasing amounts.
“Since the credit crunch, accessing funding through traditional paths such as business loans has remained challenging for smaller businesses, and so the flexibility of finance options, competitive prices and the quick turnaround of decisions associated with invoice finance is a real draw for these businesses.”