More large businesses are borrowing against payments they are owed, according to data released this morning.
The number of companies with a turnover above £50m that were borrowing against invoices climbed 25 per cent last year to 893.
The figures from the Asset Based Finance Association (ABFA) also show the amount of cash borrowed by businesses against their stock rose 22 per cent last year to £607m. Asset backed borrowing by businesses was £19.7bn at the end of last year, up £260m on 2014.
Around 80 per cent of asset based finance is invoice finance.
“Asset based finance is now one of the primary sources of funding for businesses of all sizes. It is competitively priced and providers can also offer quicker decisions on asset based finance than on traditional unsecured lending,” said ABFA chief executive Jeff Longhurst.
“Previously, this form of commercial finance had been associated with SMEs but we’re seeing increased appetite from the UK’s largest businesses to secure finance to fulfil growth plans and expand order books.”