The Asset Based Finance industry has advanced a record breaking £16.2 billion in quarter one of 2008.

The first quarter report from the Asset Based Finance Association (ABFA) reveals that the industry is worth more than £48 billion already this year, and where other finance industries are facing problems in the wake of the credit crunch, the asset based finance industry is holding its own. Advances continue to increase, showing that companies using a form of asset based finance continue to grow.

In times of tight liquidity, more and more firms are looking inwards and investigating other forms of releasing finance. While advances against debt still remain the most popular form of raising finance, and reports growth year on year (15% increase), advances against assets have seen a 27% increase.

Kate Sharp, CEO of ABFA said: "Even in these worrying financial times, the asset based finance industry continues to go from strength to strength. The quarter one statistics give us a good snap shot of the economy; increased credit protection payments are indicative of higher levels of corporate failure with the increase of export and import finance signalling difficult UK trading. In times of toughened borrowing and trading we expect to see more companies turn to using their business assets to raise or release finance. It will be interesting to watch how the rest of the year unfolds."