Factoring

Might your suppliers be about to throw your business on the bonfire?

With the year end fast approaching, so looms the spectra of having to file last year's accounts.

Many SME’s will not have thought about the potential problems if they are about to file a less than impressive set of figures, with many assuming everyone is in the same boat.

Halloween may have passed, but don’t let your overdraft renewal turn into a real nightmare!

There is much talk in the media about banks not supporting new lending propositions and failing to meet their lending targets.

But let’s also have a little sympathy for these beleaguered institutions, who surely cannot be asked to lend good money after bad to the zombie companies or, in some cases, the dead and buried with no chance of revival, Halloween or not.

2011 ABFA report shows increasing value of invoice finance

The ABFA’s (Asset Based Finance Association) annual report for 2011, released this summer, has indicated how invoice finance is continuing to prove a vital source of external funding for UK enterprises.

Almost £250 billion worth of cash was funded to businesses across the UK throughout 2011, a rise of 7.6% on 2010.

Invoice discounting facilities continued to prove the most popular in terms of client numbers, with 17,695 companies benefitting from more than £200 billion in advances, an increase on 14% from last year.

Invoice Finance continues to grow in popularity

The Asset Based Finance Association's (ABFA) latest quarterly report for Q2 2012 (April - June) has shown that invoice finance is continuing to grow in popularity despite challenging economic conditions.

The latest quarterly figures for April to June indicated that more companies are taking up asset based finance solutions such as factoring and invoice discounting.

The amount of businesses using asset based finance increased by 4% comparing the same quarter to last year, meaning there are now almost 43,000 using such facilities.

Companies using invoice finance report increased turnover, reports ABFA

The Asset Based Finance Association’s (ABFA) latest quarterly figures have shown that companies in the UK using invoice finance have seen their turnover grow by on average 6% both this quarter and when taken into comparison to this time last year.

95% of invoice finance lenders across the UK, including Skipton Business Finance, are members of ABFA, the representative body for the invoice finance market.

ABFA reported total client sales for Q1 2012 had reached £59.2bn, rising from £55.6bn last year.

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