Businesses in the UK received an all-time high £19.4bn (26.9bn) of funding though asset based finance in the last quarter of 2014, an Asset Based Finance Association (ABFA) report revealed.
This was an increase of £1.6bn (9%) compared to the same period in the previous year.
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ABFA said that the jump in the use of invoice finance and asset based lending was driven by business funding growth plans rather than replacing their use of traditional term loans or overdrafts.
According to the research, businesses are now using 38% more asset based finance than at the height of the recession in December 2009, when £14.1 billion was provided.
The report also mentions that there is another £20.5bn of unused facilities agreed with businesses.
The association wrote that 80% of asset based finance is invoice finance, in which businesses secure funding against their unpaid invoices. Asset based lending through which businesses can raise money secured against a range of other assets they own represent the other 20%.
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By GlobalData
