Companies are increasingly seeking to raise finance from traditional asset categories such as trade receivables, according to research from Demica, which specialises in working capital and supply chain finance.
The report, which surveyed over 1,500 firms with over 50 employees in the UK, France and Germany, found that the scarcity of credit was a major setback, encouraging firms to raise a greater proportion of finance in this way.
Some 36 per cent of European companies (UK 31 per cent, France 43 per cent and Germany 34 per cent) reported that they had already raised finance against the security of their trade receivables.
Demica reckons that finance raised on this asset category is set to grow substantially over the next 12-18 months. Just under half of respondents (44 per cent) said they planned to increase their levels of finance raised against the security of trade receivables. Germany and the UK showed the most interest in developing this technique, suggesting that they will soon match already elevated levels of uptake in France.