The asset based finance industry has bucked the financial markets downturn and reported record growth for 2007. 

End of year results from the Asset Based Finance Association (ABFA) show the industry is now worth more than £191 billion. Growth in total client sales is at 12%, which means the industry has more than doubled its size since December 2000. ABFA members advanced £15.7 billion to over 48,000 UK companies last year, an increase of 16% on 2006 figures.

Kate Sharp, Chief Executive of the ABFA, said: "Despite limited liquidity elsewhere in the debt markets, the asset based finance industry has proven its resilience and shown that it can continue to grow in tough economic conditions."

"More importantly, our members have proven to be a lifeline to UK companies who have experienced tightened lending conditions and needed alternative sources of funding to sustain growth."

The other key trends are that domestic factoring grew by 6% and domestic invoice discounting increased by 12%. ABFA members advanced £15 billion against debt, equating to a 15% growth.

Given that the average growth rate of asset based finance in the US over the past 10 years has been 12%, if the UK followed the same pattern the market would be looking at advances in excess of £40 billion by 2016.