24th April 2013

The Asset Based Finance Association comments on the extension to the Funding for Lending Scheme.

It’s good news that the Bank of England has moved to extend and expand the Funding for Lending Scheme (FLS).  This has the potential to boost the finance provided to SMEs and the Asset Based Finance Association welcomes it.

It will mean that invoice financiers and asset based lenders can potentially access funding under the Scheme. We are pleased that the Bank has recognised the role that the invoice finance and asset based lending industry can play in delivering the Scheme’s objectives.

These types of finance are growing in popularity and are currently supporting over 43,000 businesses, with a total annual turnover of over £250 billion, so the announcement is both timely and encouraging.

While work will need to be done to ensure these changes are effective, the potential benefits for smaller businesses, in particular, are significant.  However, work also needs to be done in providing information to businesses about the full range of commercial finance options open to them and the ABFA will continue to work with government on the Business Bank and with other organisations on getting these messages out.

Kate Sharp, Chief Executive of the Asset Based Finance Association