Rise in Sales Asset Based Finance

Figures released today by the Asset Based Finance Association (ABFA) confirm a modest increase in sales for asset based finance backed businesses. The latest quarterly survey results show a rise of four per cent on June's figures to £48,667 million which can be put down to increased buoyancy and more commercial opportunities within the marketplace.

Commenting on the latest results, Kate Sharp, chief executive of ABFA, said: "As businesses take stock and are able to plan in a stabilising climate we've seen an increase in firms looking to secure funding from our members. While the figures do show a comparative annual drop, it is heartening to see that total sales have risen since the summer, indicating a modest return to business confidence."

The latest figures mean that sales have grown over three consecutive quarters and come as the Chancellor announced in his Pre Budget Report an extension to the Enterprise Finance Guarantee (EFG) Scheme. The scheme, launched in January 2009, has helped almost 9,000 SMEs and it will now be extended for a further twelve months, providing an additional £500 million of bank lending available to SMEs.

Responding to the news, Kate Sharp commented: "We are in favour of all practical forms of support for businesses and so are pleased the government has decided to both extend the EFG scheme, plus create the Growth Capital Fund to further support SMEs. It is so important that small businesses continue to have growth opportunities - our members are very much open to business in providing this much needed capital and it's right that the government supports these small firms."

The ABFA statistics also point to a further increase in general business confidence, with the average number of debtor days outstanding seeing a small decrease compared to the previous quarter. The latest figures show the number of days taken for debtors dropping from an average of 62.4 to 59.8.

Author: The Asset Based Finance Association, 13/12/2009