The number of larger businesses using invoice finance jumped by 25% year-on-year, from 713 in 2014 to 893 in 2015, says the Asset Based Finance Association (ABFA), the body representing the asset based finance industry in the UK and the Republic of Ireland.

According to the ABFA, businesses with a turnover above £50m (€64.5m) have been increasingly using invoice finance to complement ‘traditional’ sources of finance.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

The amount of asset based finance secured by UK businesses against stock has jumped 22% year-on-year in 2015 to £607m.

The association added that the use of factoring amongst SMEs has also increased by 3%.

The ABFA said the overall amount of funding provided to businesses through asset based finance – including invoice finance as well as asset based lending – rose by £260m in the past year to stand at £19.7bn at end of December 2015.

Jeff Longhurst, chief executive of the ABFA, said: "Previously, this form of commercial finance had been associated with SMEs but we’re seeing increased appetite from the UK’s largest businesses to secure finance to fulfil growth plans and expand order books."

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

"Asset based finance is now an established part of the commercial finance market and there is increased appetite from UK businesses to secure funding through this route. Whilst the availability of finance from traditional sources was relatively slow to recover from the credit crunch, the asset based finance market opened its doors to businesses of all sizes and there remains significant capacity to provide more finance to more UK businesses."