More businesses are borrowing using asset-based lending (ABL), according to new statistics from Lloyds TSB Commercial Finance.
The company increased the number of borrowers taking out loans against their assets, including debtors, stock, property and/or existing plant and machinery, to 14,000 during the last quarter of 2003.
More large-scale companies are using it as a way to raise funds for buy-outs and acquisitions, with a significant rise in advances to clients with a turnover of more than Ј10 million.
The figures reflect the increasing role asset-based finance is playing in the funding of mergers, acquisitions and management buy outs, such as the recent MBO at Black Country architectural ironmongery distributor Laidlaw Solutions Ltd.
During the period of the survey LTSBCF saw its clients' invoice discounting turnover rise to Ј13,778 million. Its year-on-year growth of 19.8 per cent in this area outstripped the market average of 14.5 per cent....
