New figures out today from the Asset Based Finance Association show lending to businesses has grown for three quarters in a row.
Total advances from members this quarter is £15.1 billion, a growth of 4% year on year. This growth continues to show growing confidence among firms in accessing the funds available to them and is the highest total lending figure since March 2009. The ABFA figures clearly show that this form of lending is very much open and available to businesses, in stark contrast with wider net lending which continues to fall.
Sales from firms financed by asset based finance have performed particularly strongly this quarter with a double digit rise of 11%. Year on year figures also show a similar growth of 11%, indicating that firms which use invoice finance are growing sales and out performing the wider economy.
The total values against which the lending is made are also at a record high, standing at £31.7 billion, the highest it's been since 2006, indicating the increasing strength in the balance sheet of businesses using this form of finance.
Export invoice discounting has shot up 49% this quarter to sales of £3.29 billion, continuing the trend seen last quarter that firms are increasingly looking abroad for sales and growth opportunities.
Kate Sharp, chief executive of the Asset Based Finance Association, said: "These
quarterly stats confirm the trend that asset based finance is rising in popularity
and is a vitally important form of business lending. While other forms of lending
are showing a decline, this is the third quarter in a row where total lending
from ABFA members has increased. SMEs and larger companies which use asset based
lending are clearly enjoying increased sales and it's really good to see this
positive news when other indicators are broadly negative."
To view the full report on the statistics for Quarter Three 2010 please click here.