Invoice finance has outperformed all other
types of business lending year-on-year in the first quarter of
2011.
The Q1 report by the industry body Asset Based
Finance Association (ABFA) shows the total lent through invoice
financing grew 9% to March 11 compared with a contraction in wider
bank lending of 2.5%.
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Leasing and hire purchase grew 8% over the
same period according to a report from the Finance and Leasing
Association published last month revealing a trend in the growth of
alternative funding models.
Kate Sharp, chief executive of ABFA,
attributed the growth to the “inherent strengths” of asset based
finance in unpredictable economic times.
The ABFA report showed an increase in turnover for companies
using invoice finance with the average annual turnover per client
up to £5.27 million from £4.36 million last year, an increase of
21%.
The report also revealed a drop in new client numbers of 2% on
the previous year.
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By GlobalDataABFA collated data from 41of its members and associates from the
UK and Ireland to produce the report.
grant.collinson@vrlfinancialnews.com
