Close | 
Top
The UK trade association for invoice finance is changing its name to reflect the evolution of the industry and broadening of the funding offered to UK businesses by its members. The FDA will become the ABFA (Asset Based Finance Association) on the 2nd July, reflecting the growing number of companies that are turning to financial solutions that release the working capital tied up in organisational assets.
Beginning in 1976 as the Association of British Factors (ABF), the trade association has continually evolved throughout the years to meet the needs of its members and changes in the industry. In 1980 the association changed its name to the Association of British Factors and Discounters. The most recent iteration, the Factors and Discounters Association (FDA), was formed in 1996 following a merger between the AIF and CFA European Chapter.
Ted Ettershank, Chairman of the ABFA and Managing Director of Lloyds TSB Commercial Finance said, "Historically asset based finance has been a small to middle market product but as deal sizes in Europe continue to grow, our members are being asked to offer finance for large, corporate and private equity backed transactions. As a result our industry now funds companies from start-ups to larger corporate deals on a pan-European and global stage and it is important that the association’s name is reflective of this."
Kate Sharp, CEO of the ABFA added; "ABFA members were advancing over £13 billion to UK companies at the end of March 2007, and a significant amount involved funding against assets other than invoices. Industry members are becoming increasingly flexible in their approach to structuring financial packages and funding is also available against stock, property and plant and machinery. They are even looking at funding against intangible assets such as brand and intellectual property.”
"While invoice finance still forms the major part of our members offering, the name change demonstrates how the industry has developed and reflects the wider range of funding solutions available. The change is also part of a wider strategy to educate businesses about ways of releasing working capital, which would otherwise be inaccessible.”
The
ABFA membership includes divisions and subsidiaries of all the major UK banks,
foreign banks, major global industrial companies through to small owner managed
finance companies. The association exists to provide support to its members including
providing on-line services, education and training, events, lobbying, public relations,
industry research and industry news.
* Please note that the advertising campaign to coincide with this annoucement begins in the Daily Telegraph, Business section, page 3 on Monday July 2nd, 2007.