UK Finance: Q2 2018 sees further increase in businesses using asset-based lending

UK Finance has published its Invoice Finance and Asset Based Lending Update for the second quarter of 2018.

Key data highlights:

Client numbers reached 40,333, an increase of 1.1 per cent compared to the same quarter the previous year and the highest quarterly level since 2015.

The number of clients with a turnover of over £10 million increased to over 5,000, up seven per cent compared to the same quarter the previous year.

Total advances to all client businesses supported by invoice finance and asset based lending stood at £21.4 billion at the end of Q2. This was 1.9 per cent lower than the same quarter the previous year.

Asset based lending (lending against assets other than invoices) amounted to £4.3bn, 5.6 per cent higher than the same quarter the previous year. This was driven in particular by funding advanced against stock, which was 18 per cent higher than the same quarter in 2017.

Commenting on the data, Stephen Pegge, Managing Director, Commercial at UK Finance said: “It is encouraging to see steady growth in client numbers for the second consecutive quarter, with over 40,000 businesses receiving funds through invoice finance and asset based lending.

“This is being driven partly by an increase in the number of larger businesses opting for this form of finance. We are also seeing the number of smaller clients and the funding provided to them remain steady, and the industry has the capacity and expertise to provide even more financing to these businesses in future.”