Figures just released from the Asset Based Finance Association (ABFA) show invoice finance is out performing all other types of business lending. Total advances from members have grown 9% year on year, whereas bank lending actually contracted by 2.5% in the same period.

The latest quarterly industry report from the ABFA shows turnover growth of 15% year on year, with total client sales in the quarter of £55.8bn.

The Interface Financial Group (IFG), North American largest alternative funding source for small businesses, offers 'spot factoring' help small businesses struggling with raising capital to fund growth prior to economic recovery.

Big business is being urged to help smaller firms - often reliant on bank lending for credit - by financing the suppply chain.

A government green paper (consultation document), Financing a Private Sector Recovery, looked at several alternative means of obtaining finance to ensure businesses are able to grow and boost the recovery.

It aimed to start a dialogue with businesses and the financial services industry to develop and support alternative means of finance for small businesses.