<ul><li>UK Finance was formed on 1 July 2017 to represent the finance and banking industry operating in the UK. It represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation brings together activities previously carried out by the Asset Based Finance Association, the British Bankers? Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.</li>
<li>The Members of UK Finance who provide asset based finance include the UK high street banks, specialist and challenger banks, the specialist businesses of some international banks and large corporates, and many independent non-bank finance providers.</li>
<li>In 2013, the ABFA established a Standards Framework for its Members and their client. which continues under UK Finance. This Framework incorporates: the Code and supporting Guidance, setting out the standards which clients and potential clients can expect from Members; an independent Complaints Process delivered by Ombudsman Services; and an independent Professional Standards Council. Further information about this Framework can be found at: <a href="http://www.abfa.org.uk/standards">abfa.org.uk/standards</a>.</li&gt;
</ul><p>About Asset Based Finance: there are two basic types of asset based finance.</p>
<ul><li>Invoice Finance: The two main types of invoice finance are factoring and invoice discounting. Both allow businesses to release the working capital tied up in their unpaid invoices.  In both the finance provider will normally purchase the client?s outstanding invoices, providing an immediate initial payment of the majority of the invoice value, with the remainder (less the financier?s fees) paid to the client on payment by the debtor.  Factoring incorporates an added service element, with the financier normally managing the credit control and collections process.  This makes it particularly suitable for smaller businesses.  In an invoice discounting facility, the client would normally manage its own credit control.  Most of the funding currently provided by the industry in the UK is through invoice finance facilities.</li>
<li>Asset Based Lending: An asset based lending facility will provide a broader mix of funding including revolving and amortising structures against the entire range of business assets. Traditionally advances are available against debts, inventory, property, plant and machinery, but can be arranged against intangible assets such as brands and forward income streams.</li>
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