Key data highlights:
• Growth in overall advances to clients was up 4% year-on-year
• Here was particularly significant growth in wider asset-based lending facilities (11% year-on-year), driven by funding advanced against stock
• Client numbers were marginally up (1%) but total client turnover within Q1 was down year-on-year
Commenting on the data, 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 £22bn, 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.
“Conversely, total client sales are down compared to the same period in 2017, reflecting subdued economic growth in the first quarter.”