News and Events

ABFA reports strong growth

07/12/2011

The asset based finance industry continues to support UK businesses in the challenging economic climate, with the ABFA reporting that advances to its members’ clients rose in the third quarter of 2011 by 9% on an annual basis.

Its quarterly statistics found that £16 billion was advanced to clients during the three months to October, with a further £7.2 billion made available.

In addition to availability, further encouragement can be sourced by client sales exceeding £60 billion during the quarter for the first time, demonstrating how important a flexible and targeted cash flow facility can be to help drive growth amongst SMEs.

Given the widespread challenges of late payment currently, it comes as no surprise that credit protection payments rose significantly from the previous quarter to £7 billion, with the annual growth of non-recourse facilities reaching 21%.

Overall client numbers increased marginally on a quarterly basis, with larger businesses accounting for a slightly higher proportion of the ABFA’s members’ clients. Indeed, the average industry client size has now risen by 15% over the last 12 months, with businesses turning over less than £1 million now constituting just 50% of the 41,572 clients.