Key data highlights for Quarter 2 2018

  • Client numbers reached 40,333, an increase of 1.1 per cent compared to the same quarter the previous year and the highest quarterly level since 2015.
  • The number of clients with a turnover of over £10 million increased to over 5,000, up seven per cent compared to the same quarter the previous year.
  • Total advances to all client businesses supported by invoice finance and asset based lending stood at £21.4 billion at the end of Q2. This was 1.9 per cent lower than the same quarter the previous year.
  • Asset based lending (lending against assets other than invoices) amounted to £4.3bn, 5.6 per cent higher than the same quarter the previous year. This was driven in particular by funding advanced against stock, which was 18 per cent higher than the same quarter in 2017.

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

“It is encouraging to see steady growth in client numbers for the second consecutive quarter, with over 40,000 businesses receiving funds through invoice finance and asset based lending. This is being driven partly by an increase in the number of larger businesses opting for this form of finance. We are also seeing the number of smaller clients and the funding provided to them remain steady, and the industry has the capacity and expertise to provide even more financing to these businesses in future.”

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 a trade association formed on 1 July 2017 to represent the finance and banking industry operating in the UK. It represents around 250 firms in the UK providing credit, banking, markets and payment-related services. The new organisation brings together most of the 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
  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 against intangible assets such as brands and forward income streams. 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.
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Q2 2018 sees further increase in businesses using asset based lending