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.
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."
"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."