An analysis of 41,513 UK companies that financed £212bn of sales in 2010


Courtesy of the Asset Based Finance Association Activities supported Clients


Manufacturing Distribution Services Transport Retail


Construction Other Total


The sectors finding financial support from invoice finance have remained broadly the same but two new classifications have been registered. Construction was once a no-no but in a tangible demonstration of how the industry has evolved its products and services to meet a need, it has recruited the expertise to manage exposures to this sector. The most notable statistics are those for manufacturing. Whilst the appetite remains unchanged the sector has been in retreat for some time though transport and distribution clients have virtually doubled. Maybe some imports needing moving around.


Turnover bands involved These numbers too reflect the growing maturity of the invoice finance sector. At the end of 2001 61% of the industry’s clients were turning over under £1m, by the end of 2010 this figure had dropped to 51%. It is the £10m+ turnover group that demonstrates the maturity of the sector,


16 June 2011 2001


11,194 5,560 8,169 1,399


2010


12,897 9,684


12,675 2,813 153


2,904 29,226


1,344 1,927


41,513


1,183 clients in 2001 but increased to 3,126 in 2010.


I am indebted to the Asset Based Finance Association for these composite industry numbers.


Client t/o bands £0-£500k


£0.5m-£1m £1m-£5m £5m-£10m Over £10m £10m-£50m £50m-£100m £100m+ Total


No. end 2001


12,621 5,374 8,480 1,568 1,183


% total


43% 18% 29% 5% 4%


Asset Based Finance Association 3rd Floor 20 Hill Rise Richmond Surrey TW10 6UA Tel: 020 8332 9955


No. end 2010


14, 591 6,682 13,717 3,395


2,628 276 224


29,226 Business Money – RSM Tenon 41,513 % total


35% 16% 33% 8%


6%


0.7% 0.5%


The association represents the invoice


finance sector, lobbying civil servants and politicians when proposed changes to the law look like affecting the sector to its detriment and that of its clients. It also insists that its members ring-fence client funds.


It has 48 members, those in the review are identified in our table on page 5.


Editor


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