Home > Uncategorized > Asset based lending booming

Asset based lending booming

Up 16% year on year and fivefold in a decade. Extraordinary figures in many ways but not unexpected given the logical drift towards this form of lending

it is worth quoting ABFA on this

“We’ve entered a new era for business funding, where asset based finance is an everyday part of the commercial finance toolkit for businesses of all sizes.

“Financing tools like these have already been commonplace in the United States for a long time, and have played a key role in funding the recovery for a lot of businesses in sectors like manufacturing. We’re now seeing big British businesses following their lead, and using asset based lending as a vital part of their growth plans.

“There are a lot of UK businesses who are seeing opportunities for growth, whether through taking on large new orders, investing in their R&D programmes, or recruiting new staff. More and more of them are now borrowing against their assets to fund that expansion.

“There are general concerns about the availability of finance for businesses and the consequences this could have for the recovery. The asset based finance market in contrast – while it has grown sharply-still has unused capacity, and providers are actively looking to grow their lending books.”

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