Figures released by The Asset Based Finance Association (ABFA), revealed that the growth in businesses borrowing against their hard assets has seen a significant increase in 2015.
ABFA noted an all-time high of £4.2bn of funding, compared to a previous figure of £3,8bn in 2014 – a rise of 61% since 2011.
Recently, asset based finance has become a popular option for businesses and many are now using this option instead of the traditional methods, such as bank loans and overdrafts. Typically, larger businesses are noted to favour this alternative and borrow against their inventory, plant, machinery and real estate.
Jeff Longhurst, Chief Executive of the ABFA, says: “The benefits of invoice finance are getting increasingly well known, but in addition to that, borrowing against hard assets is one of the innovative forms of alternative finance that has really gone mainstream in the last couple of years.”
“More and more businesses are starting to see so-called alternative finance as their primary form of funding, rather than just as an unconventional complement to traditional lending.”*
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