NACFB Survey 2010/2011: 

• Total commercial lending to SME’s via brokers up by 14% year on year
• BUT overall lending still remains only at 44% of total at the peak of the market
• Invoice finance increases for the fourth year running, now double of that in 2007
• Buy-to-let mortgage lending increases by 46% but this follows huge drops in previous two years.

The National Association of Commercial Finance Brokers (NACFB) has released the results of its latest annual survey of its members. Chief Executive of the NACFB, Adam Tyler, commented: “We have continued to see the SME community struggling to raise funding and being faced with increased costs. Our latest figures reveal the true position of both excellent and vulnerable businesses across the whole of the UK.  Despite many lenders’ protestations that they are lending more than ever, these figures reveal what anecdotal evidence has already shown: that funding for businesses is still very hard to access, but it has improved.  Whilst we are very pleased to report that there is an increase in lending over the last twelve months, this is now coming from a wider variety of lenders and is also being lent in a real variety of ways”

He continued: “Commercial Mortgages rose by just over 6% and Asset Finance went up by 3.5%, however short term lending rose by a whopping 180% over the last year. Our asset finance brokers in particular have struggled to find funders, but there has been an increase in the number of smaller lessors coming into the market. To try and fill some of the gaps in funding we have seen over the last few years. It is pleasing to see an increase in Development Funding of 103%, our members have been helping provide the cash needed by developers to build much needed new residential housing stock.”

“The increase in invoice finance for the fourth consecutive year shows that our members are seeking more cost effective borrowing where they can for their SME customers, as overdrafts limits are reduced but costs have increased. We have more than doubled the amount of invoice finance facilities we have been setting up and this is now just short of £1billion of new business in the last 12 months”

Adam Tyler added: “Around 90% of small businesses bank with the four main high street banks; when it comes to borrowing SMEs are now reaching out to a wider variety of lenders. NACFB members have access to 68 different providers of business finance for their clients. Businesses do want to borrow; they do want to grow. A recent survey of SMEs showed that only 16% had applied to their banks for borrowing, of which one third were rejected. These businesses need to feel confident when they are considering borrowing, and the NACFB now receives ever increasing numbers of introductions for new business from a plethora of different SME trade bodies. Our members are now sourcing new lines of funding and this is helping the SME’s in the UK to grow and invest”

This takes the total value of loans on its books to more than £800 million and total assets to more than £1 billion.

Ian Wilkins, group managing director of commercial finance at Aldermore, said: “At a time when the big banks are falling short of their business lending targets, Aldermore is exceeding all expectations.

Aldermore offers specialist financial support to SMEs which enables them to purchase assets such as plant and equipment, improve their cashflow and acquire business premises.

In July, Aldermore’s Invoice Finance business made over £130 million of funding available to SMEs which is an increase of 42% over the same period last year (the invoice finance market has grown by less than 10% over the same period). At the same time, its Asset Finance business, which only started lending last year, boosted the bank’s balance sheet by £100 million, with £32 million of new loans being written last month.

We offer a scheme for the smaller value asset finance deals The scheme presently allows us to consider deals with an invoice value below £3,000 on and can be funded over 30 months with just 1 months payment up front.

We will Fund assets valued below £3,000

Further to our regular review of our small ticket asset finance products we are pleased to announce the following changes:

1) The 1+29 term can be replaced with 3+33.

2) Where the previous scheme excluded certain business sectors, we’re pleased to announce we will now consider proposals for all business sectors provided the equipment required is critical to the operation of the business.

Proprietor(s) or guarantor(s) need to be homeowners with good equity, clear searches and manageable debt levels.

Higher risk business sectors (Pubs, Beauty, Estate Agents etc) may require the proprietor(s) to be a stronger covenant than other business areas.

Apply Online

Tel: 0845 070 20 50

Enable Finance Ltd are members of the National Association of Commercial Finance Brokers and are licensed under the Consumer Credit Act.

The operating performance of all the Group’s business units, combined with the effects of the integration of BNP Paribas Fortis and the drop in the cost of risk, helped generate €3.84bn in pre-tax income, up 67.7% compared to the first quarter of 2009.

For more information on business asset finance or how leasing can help can help your business spread the cost of capital purchases please follow the link.

He takes over the chairmanship from David Betteley, director of financial services at Jaguar Land Rover, who is standing down as FLA chairman after three years.

Sutton said: "I am very grateful to David Betteley for his strong leadership of the FLA over recent years, and I am conscious that this is an exciting time to take over from him as Chairman of the FLA. I look forward to working with the FLA team to make sure our voice is heard by the next Government and by our regulators, so that our members have the best possible business environment in which to serve their customers and so contribute to the economic recovery."

Asset Based Factoring is designed to maximise the level of finance available to a business against the value of its assets. Sometimes described as “collateralised lending”, Asset Based Lending delivers a senior debt injection that provides working capital, helps with growth and can enable a business to re-structure. Security is taken against assets hence the term “lending”.

The amount available under an Asset Based Factoring arrangement is based on the combined assets of a business, naturally this can be tailored to the individual, so your specific business may only want to fund sales ledger and or its plant and equipment.

Here are a few examples of security used as part of Assets Based Factoring deals

• Current Assets -  accounts receivable or debtor ledger and stock inventory
• Fixed Assets – such as property, commercial vehicles,  plant & machinery
• Intangible Assets – these may include brand names, patents and trademarks

The Company Borrowing the money draws on a line of credit based on their assets. Taking an overdraft facility from a bank or securing a loan does not always meet the long-term requirements of a growing or restructuring business. Asset Based Lenders look beyond financial statements to determine advances and frequently provide funds where traditional sources are not available

What Can Asset Based Factoring Be Used For:

• Business Refinance
• Corporate Restructure
• Growth & Sales Funding
• Business Turnaround & Rescue
• Mergers & Acquisitions
• Management Buy Outs (MBO)

If you would like to know more about asset based factoring or more importantly how asset based factoring could help your Company please do not hesitate to call Phillip Evans direct on 0797 0500425

How to Apply For Asset Based Factoring

Firstly Enable Finance offer all our clients a free and with no obligation consultation either over the phone or in person to suit you so that we fully understand your business, business goals and ultimately what you are trying to achieve.

Click here to obtain an Asset Based Factoring Quote.

Funding partners have just issued new lending criteria for the following assets types. (The assets types are typically soft assets, not heavy plant/machinery or commercial vehicles). The following list of Equipment can be leased via Enable Finance Equipment Leasing Division.

The accolade is the result of a totally independent poll amongst industry peers and acknowledges the success story of a relatively new brand to the ABL market. Part of Bank Leumi (UK) plc, Leumi ABLs flexible and highly personal approach together with its full ABL product capability including stock and trade finance, have created a winning combination since the business launched in 2006.

Phil Woodward, Managing Director of Leumi ABL, comments: "Winning this award is a huge honour. The commercial finance marketplace tends to be dominated by big, established names and we are delighted to see that the advisers and introducers with whom we work truly value the approach we take to structuring deals for their clients.

Not only does this award demonstrate the support we have across the industry, but also the phenomenal achievements of our experienced team as they continue to build the client base and reputation of Leumi ABL.

"Paul Hird, CEO of Leumi ABL adds: "Knowing we have won the trust of our introducers, especially at a time when the economy presents such tough challenges for clients and funders alike, gives us great encouragement and we look forward to forging new relationships as the business continues to develop."

To discuss a full range of Asset Based lending products including Invoice Discounting, Leasing, trade finance and Stock funding please contact Phillip Evans on 0797 0500 425 or email phill@enablefinance.com

Bibby Asset Finance had previously offered, leasing, hire purchase, sale and lease back and the ability for clients to refinance assets held within the business.

Enable Finance Ltd. can confirm that whilst Bibby is a loss to the industry as a whole Enable Finance do have a number of asset finance companies that are still very active and eager. If you wish to discuss any business finance or refinance issues please contact Phillip Evans or vist our Corporate Finance page.