Small business invoice financing up by 60% in a year
Finance arranged through asset based lending (typically short term funding such as invoice discounting, factoring, equipment and stock finance) grew in 2016 to a record £4.3bn according to the Asset Based Finance Association (ABFA) – marking an increase of 22% over 2015.
ABFA member lenders play an important role in the booming alternative finance market, a market which is growing every year as business owners look beyond the main banks in their search for the best finance packages.
With the uncertainty in the economy, especially following the Brexit vote last June, overdrafts are less attractive as a form of finance as, although they are low cost, there is the chance that the bank could call the overdraft in at any time.
The background to this increase in lending is broad – from stock, equipment and invoices to short term funding against property or intellectual property. Almost all sectors of lending have seen increases in lending over the last 12 months compared to the previous year.
acorn.finance has been at the forefront of this upturn arranging significantly more business finance through invoice finance and equipment finance in 2016 than the previous year. We are looking forward to growing on that success in 2017.