Businesses turn to invoice finance as bank lending falls again
Businesses’ use of asset finance rose by six per cent to reach £18.9 billion in the year to the end of March 2015.
The figures from the trade body ABFA reveal that invoice finance accounted for 78 per cent of the total. The increase comes as Bank of England figures show that traditional bank lending to businesses fell from £383 billion to £375 billion over the same period.
Jonathan Cranston, chair of Ashley Business Finance, said: “With bank lending to small firms continuing to decline, alternative finance providers like Ashley are coming to the forefront. Small firms often find that we can provide finance that is more suited to their needs than a traditional bank loan and give them a better service.
“As lending decisions are not based on conventional bank loan criteria, in many cases we can even help those with less than perfect credit ratings. Another advantage is that, with invoice finance, businesses don’t have to worry about credit control as we collect the money on their behalf – a major benefit for many small firms.”