As the money market continues to tighten, UK businesses are increasingly turning to their assets to release cash for growth. 

The latest statistics from the Asset Based Finance Association, the trade association for the UK asset based finance industry, shows that members have advanced over £15 billion to 48,273 companies at the end of the third quarter. Client numbers and sales have grown by 11 per cent since September 2006. 

Whilst the majority of capital released has been via outstanding invoices, the figures show that the amount lent against other assets has increased by one third in the last year. The number of companies using asset based lending has grown by 20 per cent since September 2006.

Kate Sharp, Chief Executive of the ABFA comments:"The impact of the sub-prime mortgage crisis has meant that there is less cheap debt available and there has been a general tightening of lending conditions. As a result, companies are examining their balance sheets more closely to identify where capital is tied up and are becoming more aggressive about how they can utilise their assets to fund the business."