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New figures from industry trade association UK Finance have revealed that invoice and asset-based lending grew 4% in Q1 2018 compared to the same period last year.

Asset-based lending was up 10.7% to £4.3 billion, while invoice finance rose 2.4% to £17.4 billion.

Stephen Pegge, managing director commercial at UK Finance, said: “Invoice finance and asset-based lending by UK Finance members showed solid growth in the first quarter and stood at almost £22 billion, up 4% on 2017.

“Members are reporting particularly strong growth in asset-based lending facilities, showing that as well as funding against invoices, client businesses are increasingly accessing wider finance facilities secured against stock.”

The total number of clients rose slightly to 40,320, compared to 40,012 for the same period last year. The largest proportion of clients was in the services, manufacturing and distribution sectors.

Within the customer base, 1,585 required asset-based lending or stock finance, up from 1,283 for the same period last year.

UK Finance also noted that the turnover of the client base using invoice finance and asset-based lending was down year-on-year by 2.9% to £69.2 billion.

UK Finance is a trade association formed last year to represent the finance and banking industry operating in the UK.

It represents around 300 UK companies in the credit, banking, markets and payment-related sectors, bringing together most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.

UK asset-based lending new business volume (£m)

uk asset based lending1