In 2016 asset based finance grew by 13%, representing a record £22.2bn. According to the Asset Based Finance Association (“ABFA”), invoice finance represents the majority (80%) of this amount. The balance being finance raised against tangible assets (inventory or plant & equipment).
This has been driven by not only SME’S but larger businesses complementing traditional sources such as overdrafts and loans, to finance working capital, new projects, growth opportunities and even M&A activity (which allows a successful acquirer to borrow against the value of the target firm’s invoices).
Full article – Invoice Finance (pdf)