Asset based finance supported businesses representing 15.1% of the UK’s economy in the year to 30th of June 2015, ahead of an average of 10.3% across Europe, according to data from EU Federation Factoring and Commercial Finance.
The value of the segment of the economy supported by asset based finance in the period stood at 189.7bn. In France it stood at 117.7bn, while in Germany 100.5bn.
Aside from the UK, the top three European countries in terms of proportion of the economy supported by asset based finance are: Belgium (14.5%), Republic of Ireland (13%) and Portugal (12%).
Jeff Longhurst, chief executive officer of the Asset Based Finance Association, the body representing the invoice finance and asset based lending industry in the UK and the Republic of Ireland, said: "UK financial services firms have long been real innovators in developing invoice finance products, and businesses in the UK have traditionally been keen to access this funding. Now the rest of Europe is also following suit.
"Invoice finance has played a pivotal role in keeping funding flowing to SMEs as more businesses look to complement or replace traditional bank lending with asset based finance. Given how important EU markets are to UK businesses, perhaps what is most encouraging is that more businesses across Europe are realising the value of asset based finance – it’s up 5 per cent overall – and it has cemented its position as a key alternative source of funding for businesses of all sizes."