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Asset based boom

Asset based financing grew more than any other type of alternative funding in the last financial quarter.

Total funding lent by members of the Asset Based Funding Association hit £16 Billion during the last 3 months, which is an increase of 9% year on year. The number of companies using asset based funding was unchanged but the client size had increased. This is fantastic news as it seems more companies are turning to alternative funding

On the other side of the coin, out of a number of companies surveyed, it was found that they would like to lend more money but are unsure where to start, where first port of call may have been the bank for a business loan.

It’s difficult to get this type of lending out to SME’s. Some are very old fashioned and wary of alternative funding as it poses a different risk to the ones they are used to. Although if you were used to seeing your business advisor at the bank and simply signing a contract for a loan, it is unfortunately no longer that simple. Companies need to be aware of these other methods of funding.

Small to Medium enterprises are seen as the fuel and fire of the economy, if they are suffering with lack of financing how are we meant to get the economy moving again? It’s all about education and information.

For those who have tried factoring, invoice financing and asset based funding, they continue to do so as they realise the potential of having capital upfront. This enables them to grow and puts them in a better position in terms of credit ratings and so on.

Word of mouth is a great tool, but spreading the word is a lot more difficult. So if you know of a company that needs instant capital, mention factoring and asset based funding to them as a quick simple solution.

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