Monday, 12 December 2011

In the current climate, the number of British and Irish businesses using invoice finance as an essential type of business finance is increasing, as reported by Asset Based Finance Association (ABFA). In the third quarter of 2011, the number of companies using business finance has increased by 9%, compared with 2010, with a trend towards uptake in larger businesses. Turnover from British and Irish companies using invoice finance has risen though, standing at £62.3bn for this quarter suggesting that firms which use invoice finance are growing their sales and continuing to trade successfully.

Although the figures also indicate that British SMEs and larger companies are continuing to be cautious in the current economic climate, the uncertain outlook also appears to be making SMEs more prudent, with non recourse business (where the funder takes on the risk of a potential bad debt) growing ahead of trend at 18%. Credit protection payments have also shot up 43% this quarter, rising from £4.9m last quarter to £7.0m. Read More..