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Latest ABFD figures reflect economic climate

The asset based finance industry today released its latest figures, with the industry showing an expected fall in total finance provided to companies. The tightening of the market reflects the overall decrease in UK corporate activity and the figures highlight that there are still substantial funding lines open to companies.

Total client sales were £45,667 million, a drop of 7% from March 2008. Total advances to companies was also down to £15,057 million, falling 8% from last year.

Interestingly, advances against stock rose significantly, by 96%, and export invoice discounting also maintained growth, showing a solid 7% increase, continuing the trend for firms to look overseas for additional business opportunities.

These figures compare favourably to other traditional funding routes. For instance consumer lending showed a 12% reduction and new figures from the British Bankers' Association also showed significant falls in high street lending to businesses .

Kate Sharp, chief executive of the ABFA, said: "Asset based finance is still providing funding streams for 48,000 UK and Irish businesses and is still advancing in excess of £15billion. Hence, while these figures do show a drop in overall lending, this is entirely to be expected in light of the fall in overall UK business activity, as firms downsize and change their business strategy. The main thing to highlight is that there are funding streams available to help support those firms which are growing."

Author: The Asset Based Finance Association, 03/06/2009