As traditional bank funding suffers internationally during the credit crunch, more and more businesses are looking towards asset-based finance. 

The figures from the Asset Based Finance Association (ABFA) show that during the first half of the year, the industry advanced more than £17.3 billion against invoices, stock, property and other trading assets worth a total of £31.2 billion, a growth of 15 per cent. This significant growth exceeded that of traditional funding to private non-financial organisations, which grew by just 13.2 per cent over the same period. 

Kate Sharp, chief executive officer of the ABFA, said: “As the economy tightens, securing traditional funding through banks and other financial organisations has become really difficult. As a consequence, businesses are looking elsewhere for financial support. 

“Companies are examining their own balance sheets more closely where capital is tied up and how they can become more aggressive about utilising their assets. The format of securing outside investment is no longer possible so firms are looking within themselves to generate funding that will grow in line with their business.”