In the latest Business Finance Bulletin episode Rob Warlow looks at news from the Asset Based Finance Association on how asset finance business is booming.

If you are looking to purchase plant and equipment via Asset Finance Rob discusses the emergence of a relatively new provider in the market, Secure Trust Bank.

If you purchase goods from China and struggle to find the cash up front then Rob has news of a tie up between Alibaba, the Chinese online portal, and Ezbob and IWOCA, providers of short-term finance.

In the Business Finance Tip of the Week Rob shares one of the reasons why banks say no. Don’t fall foul of this!

If you would prefer to listen to this week’s episode as a podcast simply click below to listen and download to your PC or phone.

In the latest Business Finance Bulletin Rob Warlow looks at a survey carried out by the British Business Bank into the SME finance landscape which draws a number of conclusions on how small businesses view the world of finance.

The use of asset based finance continues to grow and Rob shares news from the Asset Based Finance Association on the increased use of invoice discounting and leasing as an alternative source of finance.

In the crowdfunding world, news of a milestone reached by crowdlender Funding Knight and an announcement by Cambridge and Counties Bank of the opening of a new branch in the North of England.

In the Business Finance Tip of the Week Rob shares a conversation he had with a business owner about the use of management information and how to get the best out of it.

You can also listen to this week’s Bulletin as a podcast. To listen via your PC or download to your phone either click below to listen or click the download symbol.

In the latest Business Finance Bulletin Rob Warlow looks at the latest bank lending figures from the Bank of England… a mixture of good news and not such good news!

One finance sector which is booming is the Asset Finance industry and Rob looks at the latest growth figures from the Asset Finance Based Association which are in sharp contrast to that of the High Street banks.

Rob also talks about a new crowdfunding site, CrowdProperty which is looking to match private investors with property developers and Buy-to-Let owners on the hunt for finance. One for you to look at if you are in the property game.

And in the Business Finance Tip of the Week a clip from a live seminar in which Rob shares one question that banks will ask of themselves when reviewing your business finance request.

The rise in the level of support being given by the asset-based finance industry continues to put the banks to shame.

According to the Asset Based Finance Association (ABFA) in the three months to the quarter ended June 2014 asset-based funders (comprising of invoice finance and asset finance providers) lent out a record £18.9 billion to UK businesses.

The figures from the ABFA reveal that the combined amount of invoice finance and asset based lending provided to businesses grew by 7% in the last quarter, from £17.7 billion in March 2014, and 10% in the last year, from £17.3 billion in June 2013.

The ABFA puts the growth down to constraints on traditional lending as well as greater awareness and understanding amongst businesses as to how borrowing against the value of their invoices and other assets can free up cash to invest in growth.

The ABFA reported that 80% of asset based finance is invoice finance, in which businesses secure funding against their unpaid invoices, while the remaining 20% represents asset based lending, in which businesses can raise money secured against a range of other assets they own, including inventory, property and machinery.

Compared to the average fall in bank lending of 3% to 4% per year it’s clear that whilst many businesses may be forced to consider alternative sources of finance the fact that funding sources are now more diverse can only be a positive move.

In this week’s Business Finance Bulletin I look at how small businesses continue to suffer from cashflow problems due to late payments. Surveys from the Asset Based Finance Association and BACS reveal the extent to which SMEs are being held back by late payment… find out how.

Poor cashflow has led to businesses falling behind in VAT repayments; with insights from specialist finance lender LDF showing how overdue VAT is on the up, this is one example of the impact of late payment.

In its quest to improve access to advice and finance I have news on the government’s revamp of its Great Business website and of £10m lent by the British Business Bank to Ratesetter for on-lending to individuals.

In the Business Finance Tip of the Week I have a guest tip from Steve White of Thornbury Collection Services on the excuses businesses trot out when they are overdue on payments.

Posted on 03.12.2013, by Rob Warlow

When dealing with clients looking to raise finance or in the seminars we run it’s surprising how many business owners are only just beginning to realise that Asset Based Finance is a growing source of alternative finance.

The sector supports growth by financing asset purchases via leasing, hire purchase and unlocking cash through invoice discounting and factoring.

The latest figures for the three months to September 2013 from the Asset Based Finance Association (ABFA) have shown that the industry and its clients are continuing to perform strongly.

At the end of September members of the ABFA had total advances out to its clients of £17.4 bn, which is 6% up on the same period in 2012 (£16.4 bn). This is only the fifth time the funding balance has been above £17 bn and this demonstrates that the demand for asset based finance is strong and growing with firms increasingly using it to fund growth and their working capital requirements.

This growth contrasts with that of the wider finance market where bank lending continues to contract at the rate of approximately 3% per annum.

ABFA has also looked at how those businesses using asset based finance have performed; total sales from those businesses broke £71 bn for the third quarter, the strongest ever quarterly performance. This is up by some 14% on the same period last year.

There is a myth that asset based finance is more for larger businesses but the industry does support smaller businesses, with almost 15,000 of the over 43,000 clients being found in the £0 – 0.5 m turnover bracket, and over 30,000 in the sub £5 m bracket.

In terms of sectors they support, asset based financiers are most active in the services (30%), manufacturing (29%), distribution (24%), transport (7%) and construction (5%) sector.

If you are planning for growth check out how asset based finance can support your plans… it’s all about diversifying your funding sources.

Check out the video below on how buying assets via an asset finance facility can work for you.

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