A new survey from the Asset Based Finance Association has shown rising confidence in the asset based lending sector, predicting growth from its recent performance at 9% in 2013. This is encouraging news and shows that more and more businesses are starting to seriously consider alternative funding for their businesses, especially when bank lending is failing to measure up to requirements.
The new figures show that total advances from invoice finance will be valued at over £18 billion by the end of the year, up from £16.6 billion. There are many expectations that there will be even further gains, with the total number of companies using asset based lending options predicted to rise 7% from 42,500 to more than 45,000. Sales figures from UK and Irish firms using asset based finance are also expected to grow by 10%, rising from £254 billion in 2012 to nearly £280 billion in 2013.
However, though there is expected to be growth in the invoice finance and asset based lending industry, many members of the ABFA are less optimistic about the prospects of the UK economy as a whole. Just over 40% of respondents to the survey were expecting economic conditions to remain unchanged throughout 2013, spelling out continued tough times for many businesses. Short term prospects were even more pessimistic, with nearly three quarters expecting no immediate improvement in economic conditions.
These figures showing expected growth from the asset based lending industry confirm the overall confidence in the sector, showing encouraging improvements across a number of important factors. This shows the importance of invoice finance to the UK economy as a whole, with the invoice finance industry working hard to help the funding of SMEs to grow and expand. If wider growth within the economy is going to be achieved then this is a very important role.