Industry Information

The Asset Based Finance industry is a rapidly growing area of business finance and the ABFA wishes to support this trend by raising the awareness of this form of flexible business funding. To find out more about the industry and the types of funding available for your business click on the links below.

Why Debtor Finance?

For many companies debtor balances are the largest asset in the balance sheet. They may also turn into cash at a much slower rate than the business would like, often representing two or three months’ sales.

The factoring and invoice discounting industry has been solving these problems for over 40 years in the UK, providing a range of valued options. More

Factoring

Sometimes referred to as Full Service Factoring, this provides the complete answer to slow-paying customers, shortage of working capital and, if needed, protection against bad debt losses. Exporters may like to know that some of our Members have partners in overseas markets and can include export transactions in their service. More

Invoice Discounting

If your business already practices sound credit management, and has the staff and systems to generate rapid customer collections, the factor’s skills will not be needed. But there may still be a need to turn debtors into cash faster, and generate the maximum working capital from the sales ledger balance. More

Other Asset Based Lending

Some of our members will also provide finance against other assets if there is already an invoice finance facility in place. These others assets could include stock or plant and machinery or property.

To read more about the Asset Based Lending offering of our members, please click here to download a brochure or click here to visit the ABL section of the website.

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