This week the Asset Based Finance Association (ABFA) released their statistics for the quarter ended 30/9/15. ABFA members, of which there are over 50 , include all the bank owned invoice financiers and almost all independent providers and between them they write the vast majority of invoice finance business.
These statistics, like any, can be read in different ways. One number that is always worth looking for is the number of businesses in the UK using ABFA member facilities and as at 30/9/15 this was 44,148.
There’s not been a lot of growth here recently but drilling down further its apparent that clients who have annual sales between £0 & £5m see their numbers fall.
As at 30/9/15 35,433 client with turnover within the above parameters used ABFA member facilities. As at 30/9/14 this figure was 35,653.
Going back to the end of 2012 the figure was 36,038.
This is not an encouraging trend! Businesses in that turnover band are crucially important and I’m not really sure what these results reveal. Aside from a growing number of funders operating in that sector, such as the internet platforms, and certain single invoice financiers, a whole mix of reasons contribute, not the least of which is continued failings to get the message across properly.
With business funding readily available from conventional and unconventional sources 2016 may prove challenging for conventional invoice financiers.
That’s it for 2015………lets hope for a peaceful & prosperous 2016.