Business lending from ABL providers increased slightly in the second quarter of the year.
Asset-based lending providers increased funding to businesses by 2 per cent in the second quarter of the year compared to the same period in 2009.
Growth in invoice finance facilities also rose by 7 per cent over the same period, according to figures released by the Asset Based Finance Association (ABFA).
The total funds advanced to businesses by ABFA members in the second quarter of 2010 reached £14.59 billion. By contrast, net lending to businesses from sources other than asset-based finance declined by £3.5 billion, down 8.1 per cent from last year. Evette Orams, managing director of Hilton-Baird Financial Solutions, comments: ‘It’s encouraging to see that confidence is returning to the SME market. Invoice finance has become an increasingly popular funding tool as funds released are effectively coming from within the company itself, rather than incurring additional debt.’
Sales from asset based funded companies increased by 13 per cent in the second quarter of the year claims the ABFA, which Hilton-Baird suggest shows that invoice finance and factoring are well placed to support businesses in what is still a very challenging market.