According to the latest statistics published by the Asset Based Finance Association (ABFA), Asset Based Finance to UK businesses has grown by 13% (as at March 2017 vs March 2016), rising from £19.3 billion to £21.9 billion.

The major drivers behind the increasing use of Asset Based Finance by larger businesses have been its role in funding new projects, growth opportunities and event-driven M&A activity. In March of this year, the ABFA reported that Asset Based Finance is taking market share from bank overdrafts as a key source of funding for SMEs. The ABFA has now been integrated into a new trade association, UK Finance.

Of particular note, advances against Plant & Machinery and Inventory  have seen increases of 14% and 10% respectively over this period, highlighting the importance of Asset Based Lending in creating additional headroom in transactions by unlocking the value tied up in these assets. The upward trend in advances over the last 5 years has been for 35% for P&M and 25% for Inventory

Paul Craig, Managing Director of SIA Group, commented: “Its exciting to see the continual rise of ABL in funding the ambitions of UK mid-market businesses. This is a dynamic industry and we are delighted to be at the forefront of providing lenders with specialist appraisals of their asset security, from inventory, machinery & equipment and property to accounts receivable and intellectual property. We are always mindful of the fact that accurate valuations and advice form the foundations for the most critical decisions that lenders make and that our role is  pivotal. We are committed to ensuring that our solutions continue to be innovative, incisive and informed to support the Asset Based Lending industry in driving even greater success in the years to come.