Assets the Key to Unlocking Doors to Funding; ASSET-BASED FINANCE

The Birmingham Post (England), September 25, 2008 | Go to article overview

Assets the Key to Unlocking Doors to Funding; ASSET-BASED FINANCE


New research shows that more and more companies are borrowing money against outstanding invoices, premises, equipment, machinery, fleet and even a brand - to ensure the longevity and security of their businesses.

Kate Sharp, chief executive of ABFA, talks about the growth of the industry, how it has opened the doors for Arms to trade internationally and how it is helping to maintain a consistent cash flow in an otherwise turbulent time

You could be forgiven for thinking that in the midst of tightening credit control, securing additional funding is impossible.

However, there is another avenue of finance for businesses, that over the last quarter has become more and more popular with local companies in order to fund business activity and growth and that is asset-based finance.

As the latest ABFA figures show the industry has grown by a massive 15 per cent in just the six months from January to June 2008.

The industry advanced over pounds 17.3billion against invoices, stock, property and other trading assets worth a total of pounds 31.2 billion.

Over the same period, the value of stock used to secure advances totaled pounds 805million while the value of property stood at pounds 567million. Total advances against assets other than debt receivables amounted to pounds 840million at the end of the second quarter.

This significant growth has exceeded that of traditional lending to private non-financial organisations which grew by just 13.2per cent over the same period.

A recent economic report commissioned by the ABFA highlights the lack of liquidity in the market as a result of the central banks being reluctant to inject liquidity into the markets.

They have experienced losses on mortgaged-based securities and collateralised debt obligations and are making efforts to rebuild capital and retain liquidity.

As a result, they are reluctant to lend among themselves and to non-banks.

The asset-based finance industry, on the other hand, is ideally positioned to continue to be able to lend despite widespread deep financial frustration.

Many ABFA members are independent financial institutions, or as subsidiaries of banks, the asset-based finance division offers the banks a lower risk loan option, which they are still happy to offer. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Assets the Key to Unlocking Doors to Funding; ASSET-BASED FINANCE
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

    Already a member? Log in now.