Asset finance among UK and Irish business has grown by more than £8bn during the decade since the start of the financial crisis to reach £22.2bn in Q1 2016, according to the Asset Based Finance Association (ABFA).
The ABFA said that a shift away from traditional lending, which has declined by almost £200bn from its January 2009 peak of £591.4bn, contributed to the rise in asset based finance, such as invoice finance.
According to the ABFA, the factors responsible for the rise of non-traditional lending during the recession included fast decision-making, widespread availability, and flexibility of funding provisions.
Jeff Longhurst, chief executive of the ABFA, said: “Asset based finance was a real lifeline for small businesses during the financial crisis, but it has become a driver of growth for businesses of all shapes and sizes.”
The industry body stated that there has been particular growth in asset based finance among larger businesses, citing its use in providing finance for mergers and acquisitions.
Longhurst added: “Many bigger businesses have also looked to invoice finance to fund their acquisitions, and have moved on to using more assets than just their invoices to finance expansion.”