Peer2Peer Finance News
The UK's first peer-to-peer finance magazine for investors and the industry
  • Home
  • News
    • Personal Finance News
    • Industry News
    • SME News
    • Global News
  • Property
  • IFISA
    • IFISA Guide
  • Video
  • Open Banking
  • Cryptocurrency
  • Features
    • Joint Ventures and Promoted Content
  • Comment & Analysis
  • What is P2P?
  • Partners
  • Events
    • Past Events
  • P2P Power 50
    • Power 50 2020
    • Power 50 2019
    • Power 50 2018
    • Power 50 2017
  • Sign up to our e-newsletters
  • Magazine
  • Directory
  • Jobs
  • My Account
    • Manage Account
    • Change Password
    • Log In
    • Log Out
shutterstock_593629184
March 13 2017

UK asset-based finance surges to all-time high in 2016

Anna Brunetti Industry News, News alternative finance, asset-based finance, company credit, invoice finance, Jeff Longhurst, p2p, P2P lending, SME credit

ASSET-BASED finance to UK businesses has risen by 13 per cent over last year, hitting an all-time high of £22.2bn.

The Asset Based Finance Association (ABFA), who compiled the research, said that the UK’s biggest companies have played a key part in this increase in demand, as they look to fund new projects, growth opportunities and acquisitions.

Businesses with an annual turnover of more than £100m have secured £8.1bn of asset-based funding over the last year – a 21 per cent increase from 2015.

Read more: MarketInvoice launches new invoice finance product

The trade body said that asset-based finance had grown by seven per cent in the last quarter of 2016, which it attributed to businesses looking to create a ‘cash cushion’ in the wake of Brexit-induced financial instability.

APFA said that invoice finance – which allows businesses to release the working capital tied up in their unpaid invoices – accounted for as much as 80 per cent of asset-based debt that businesses across the country used to fund mergers, growth opportunities and new projects.

Asset-based finance in the UK

image003

Source: ABFA

The remaining 20 per cent comprised asset based lending, which provide a broader mix of funding facilities against the entire range of business assets such as inventory, property, and forward income streams.

“Larger businesses are increasingly using asset based finance in innovative ways to fund their growth and M&A activity,” said ABFA’s chief executive Jeff Longhurst.

Read more: Funding Invoice agrees £150,000 facility with Zanzan Eyewear

“It is already well used amongst SMEs, but now larger businesses are well aware of the opportunities it provides them. Being able to release the value in a target company’s invoices can often be the critical factor in an acquisition.”

“All sizes of UK businesses need to be aware of the possibilities and opportunities that asset based finance can provide them beyond what traditional sources can often offer them.”

Read more: SMEs unaware they can secure finance on assets

RateSetter adds more detail to performance statistics Savers reluctant to take risks for bigger returns

Related Posts

Dog at school

Industry News, News, Top 3

Five key takeaways from the fintech review

Closed sign

Industry News, News, Property, Top 3

The House Crowd goes into administration

investing

Industry News, News, Top 3

Government urged to modify EIS to promote lending

Popular posts:

  • RateSetter to stop investment withdrawals from 26 March
  • UK Finance calls for global fintech cooperation
  • Metro Bank plans to offer RateSetter lending through…
  • The House Crowd goes into administration
  • RateSetter confident of growing Metro Bank’s…
  • FCA puts the brakes on Buy2Let Cars
Back To Top
  • Home
  • Contact
  • About
  • Team
  • Advertising
  • Subscribe
  • Privacy
  • T&Cs
  • Disclaimer

Follow Us on Social Media

© Peer2Peer Finance News 2020
• Additional design by