UK Finance’s Invoice and Asset Based Lending Update for Q3 2018 reveals:

  • Support for businesses through invoice finance and asset based lending stood at £22.6 billion at the end of Q3 2018, up two per cent compared to the same quarter the previous year.
  • The number of businesses using invoice finance and asset based lending remain stable at over 40,400.
  • For large businesses (with a turnover of over £100 million), support stood at £7.4 billion, with an average advance value of £17.2 million.

Commenting on the data, Stephen Pegge, Managing Director, Commercial at UK Finance said:                                                                                                                                         

“Asset based lending continues to show steady growth, driven mainly by advances to larger businesses.

“Support to small and medium-sized companies through invoice finance and asset based lending is now comparable to total balances drawn on overdrafts.

“However, overall growth has remained modest in line with recent trends across SME lending, as businesses delay investment decisions until the broader economic picture becomes more certain.”

Notes to Editor

  1. For more information please call the UK Finance press office on 020 7416 6750 or email press@ukfinance.org.uk.
  2. UK Finance is the collective voice for the banking and finance industry. Representing more than 250 firms across the industry, it seeks to enhance competitiveness, support customers and facilitate innovation.
  3. Invoice finance and asset based lending are forms of finance provided to client businesses against the assets of the client.  For many businesses, particularly small and medium-sized businesses, the debtor book will be one of the most significant assets they have.  Invoice finance (factoring and invoice discounting) allows businesses to release the working capital tied up in the debtor book.  In addition to providing finance against debt, an asset based lending facility can be used to provide a broader mix of funding, including revolving and amortising structures against the entire range of business assets.  These can include inventory, real property, plant and machinery, and also intangible assets such as brands and forward income streams.
  4. Invoice finance and asset based lending are used by client businesses of all sizes and across most sectors of the economy.  The industry in the UK is diverse; these forms of finance are provided by the large UK banks, international, specialist and challenger banks, as well as by a range of non-bank specialist finance providers.  At any one time, the sector will be providing over £20 billion of funding to clients, and in 2017 UK Finance’s IFABL members supported clients with a total turnover of around £290 billion.
Attachments
Asset based lending continues to show steady growth in Q3