An increasing number of businesses in the UK are using asset and invoice finance.

The number of businesses using invoice and asset finance was stable last year, as lending levels rose, according to new data.

Figures release by UK Finance for 2017 shows that invoice finance and asset-based lending reached £23.4 billion last year – a 5% increase on 2016’s total.

As a result of the rising popularity of invoice and asset finance, the size of the business using the facilities has grown, with advances to companies with a turnover of up to £0.5m rising 19% to £833 million.

Matthew Davies, director of invoice finance and asset-based lending at trade association, UK Finance, said: “These figures show a continuing increase in the use of invoice finance and asset-based lending, particularly amongst smaller firms.

“This reflects a growing appetite for finance amongst those small businesses that are already using external funding.

“These forms of finance can provide extra flexibility and improved liquidity for firms, unlocking working capital to help them grow and invest as well as allowing them to support their own suppliers.”

How invoice finance can help…

Invoice finance can be vital to businesses, both SME suppliers and contractors, who are receiving payments late or in a delayed period.

It allows businesses to receive the advance on their unpaid invoices upfront, regardless of how long it takes the customers to pay.

Slow payments should not cause a roadblock for SME businesses’ potential for growth and all businesses should be aware of the avenues they can explore for funding, including using unpaid invoices to their advantage, by borrowing against them.

Businesses currently considering finance options can find out more by contacting us on 0115 958 6872, emailing or getting an online Decision in Principle using our online tool at Asset Finance Compared.

Finance Request