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 invoice 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.

Invoice discounting is still the most popular form of asset based finance facility, with well over 18,500 companies currently using an invoice discounting facility.

£16 billion worth of cash was advanced to businesses in the quarter, an increase of 2% from the same quarter last year.

More than £23 billion is now available to businesses with asset based finance facilities.

Skipton Business Finance's Managing Director, Greg Bell, felt that more businesses would do well to utilise invoice finance to help generate increased levels of cashflow: "Our industry generates materially more cashflow in comparison to a traditional overdraft and, if a client can utilise these additional monies to benefit their own businesses, then they should be looking to take advantage of invoice finance."

"The latest figures point out that 97% of the growth is attributable to clients with annual sales of sub £5million, a market that Skipton Business Finance specialise in".