UK businesses raise record £20.3bn in invoice finance
Amount of invoice finance raised by UK businesses has increased by 27% over the last five years
UK businesses have raised a £20.3bn in invoice finance so far this year, breaking the £20bn barrier for the first time, according to the Asset Based Finance Association.
The amount is an increase of 5% on the £19.3bn secured last year and has risen by 27% over the last five years from £16bn in 2011 to 2012.
The growing use of invoice finance is thought to have been driven by the 18% increase in the amount drawn down by UK businesses with turnover above £100m – which has increased from £5.8bn last year to £6.9bn this year.
The total number of companies using invoice finance has grown more slowly than the amount borrowed – a 1% increase from 43,133 to 43.913 over the last year – suggesting businesses are securing larger amounts.
Jeff Longhurst, Chief Executive of the ABFA, commented: “Invoice Finance and Asset Based Lending are now an established part of the commercial finance market and there is increased appetite from larger UK businesses to secure funding through this route.
“Whilst the availability of finance from traditional sources was relatively slow to recover from the credit crunch, the asset based finance market opened its doors to businesses and there remains significant capacity to provide more finance to more UK businesses.”