Factoring on the rise in Q2

19/10/2010

New figures show that there was a two per cent increase in asset-based lending in the second quarter of 2010, compared with the same period a year before.

Figures from the Asset Based Finance Association (ABFA) also found that there was a seven per cent rise in invoice finance during the same period.

In the second quarter, a total of £14.59 billion was advanced to businesses by ABFA members. At the same time, lending to businesses from non asset-bases sources fell by 3.5 billion, down by 8.1 per cent from the 2009 figures.

Asset based funding also helped businesses to boom over the second quarter, with their sales rising 13 per cent. The figures show that invoice factoring is still a very relevant and useful means of generating capital for firms being hit by the continuing economic slowdown.

Many firms have been hit with poor cash flow as a result of their clients not paying their invoices on time. With invoice factoring, this is no longer a problem and firms are better placed to ensure they make the most of any improvements in their market.