If any more evidence was required of the mainstream status of invoice finance, it is provided by new figures that show that UK SMEs are driving sector growth in Europe.

According to data from the Asset Based Finance Association (ABTA), UK SMEs are adopting use of invoice finance at a much faster rate than their European counterparts. Invoice finance lending in the UK is equal to 15.7% of GDP, which is almost double the European average (8.5%).

2014 was a significant year for invoice finance and the alternative finance sector in general, as it truly emerged as a bona-fide competitor to traditional lending. Not only did the year witness the continued expansion of the sector and the types of schemes within it, but key services were also increasingly adopted as part of government schemes to boost access to SME lending. The ABFA figures highlight this acceleration.

Looking ahead, 2015 will be a pivotal year for the UK economy and the SME sector. If meaningful recovery is to be achieved, the SME confidence that has been much trumpeted has to be realised, and invoice finance and other alternative finance services have a key role to play in achieving this goal.

For all the attention that the growth of the alternative finance sector has received, there is still much potential for further expansion – traditional lenders still account for the majority of SME lending. Integral to ensuring the continued rise of the sector, and to maintaining the momentum behind the country’s economic revitalisation, is raising awareness.

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