UK businesses’ total borrowing against invoices reaches £16bn
Businesses have borrowed £16bn against unpaid invoices, according to figures released today by the (ABFA) Asset Based Finance Association.
Firms have also borrowed £4bn against property, stock, machinery and intellectual property. The total £20bn in asset backed lending is up four cent on this time last year. It is also up from £13.4bn in 2009.
Borrowing against invoices can help reduce the impact of late payments on a firms’ cash flow. Extra borrowing on other assets may also point to a higher desire to invest.
“UK businesses are keen to invest for growth and are looking to their existing assets to unlock the funding they need to achieve it,” said Jeff Longhurst, chief executive of the ABFA.
More and more businesses see unpaid invoices, plant and machinery as a potential source of finance rather than an impediment to cash flow.