Independent invoice finance provider Positive Cashflow Finance has highlighted an increase in the number of SMEs using alternative finance.
The reticence of banks to lend has been well documented. However, with the economy showing signs of recovery, it is important that businesses can raise finance for growth.
Figures released by the Asset Based Finance Association show that total funding rose from £15.3bn for the quarter ending March 2012 to £16.3bn for the same period in 2013, a 7% increase.
Asset Based Lending (ABL) can put an immediate injection of cash into a business, providing working capital or smoothing irregular cash flow.
Phil Chesham, sales and marketing director at Positive, commented: “As a relatively low-risk solution for businesses looking to expand or improve working capital, invoice finance is a useful form of ABL.
“It is ideal for SMEs looking for funding between £25,000 and £5m and covers a range of financing solutions, based on assets such as stock, machinery and property.”