Invoice Finance and Asset Based Lending

UK Finance represents the Invoice Finance and Asset-Based Lending (IF/ABL) sector in the UK. IF/ABL products are types of commercial finance that are used to unlock working capital, enable growth and support client businesses throughout the economic cycle.

Prior to the pandemic, UK Finance’s IF/ABL members were providing over £21 billion to almost 40,000 businesses at any one time. This is equivalent to around £125 billion of finance per annum. In 2021, the combined annual turnover of businesses supported by IF and ABL products was over £275 billion.

The diverse sector comprises the large UK and international commercial and corporate banks, specialist, mid-tier and challenger banks, as well as a range of non-bank specialist finance providers. The industry supports real economy businesses of all sizes, from start-ups to corporates.

Factoring and invoice discounting are the most widely known types of invoice finance. In these types of facilities the core asset will be the debtor book, as represented by the business’s invoices (or accounts receivable, hence the alternative term receivables finance). In an asset-based lending facility, the accounts receivable will be a key asset but lending will also be provided against a wider range of business assets. 

Work for members and their clients

In addition to representing the sector through a single voice to advocate, influence and engage on behalf of members and their clients with policy-makers, politicians and stakeholders, UK Finance also supports members and stakeholders through the provision of an extensive programme of specialist Training and Education. This includes both online and face-to-face training, webinars and day courses, as well as formal qualifications. This programme is available to both members and non-members.

UK Finance also provides a range of Data and Insight about the IF/ABL sector, the finance members provide and the businesses they support, along with extensive data about other types of commercial finance. 

Invoice finance and asset-based lending products and services have a key role to play in supporting the economic recovery. In order to allow businesses to use the products with confidence, UK Finance and the independent Professional Standards Council (PSC) maintain an independent Standards Framework which covers the activities of IF/ABL members.

This Framework, comprised of the IF/ABL Code and an independent complaints process provided by a specialist Alternative Dispute Resolution (ADR) organisation, along with the PSC, sets out and enforces the standards that clients and prospective clients should expect of providers of invoice finance or asset-based lending that are members of UK Finance.