New figures released today from the Asset Based Finance Association show invoice finance is out-performing all other types of business lending.
Total advances from members have grown 9% year-on-year. The total funding available was £21.1bn yet only £14.8bn was utilised by clients, meaning there were £6.3bn of funds still available.
The average turnover of clients using invoice finance has increased from this time last year, even though total client numbers have dropped slightly following the recession. The average annual turnover per client a year ago was £4.36m, whereas this has grown to £5.27m in Q1 2011, a 21% growth in just a year.
Kate Sharp, chief executive of the Asset Based Finance Association, said: "These latest statistics show just how successful the industry is plus there is no shortage of available funds. Compared to all other major forms of business lending, asset based finance has grown the most, as both clients and lenders realise its inherent strengths in these unpredictable economic times."
Here at Skipton Business Finance, our funding lines start from as little as £25k and currently go up to £5m and our existing clients range from new-starts to established businesses with annual sales of up to £30m.
More and more businesses are turning to alternative business finance such as factoring or invoice discounting to assist with their cashflow and if you would like any more information, please give us a ring today on 0845 602 9354.