Siemens’ Financial Services Division (SFS) indicates that manufacturing firms across the world are increasingly using asset finance for equipment acquisition.
The survey on which the study is based involved 40 industrial equipment and machinery manufacturers. When asked if more of their customers were using asset based financing to buy equipment, 76% said that they had seen increased demand for this type of financing.
Most participants expected demand for asset financing to continue to increase. Over the past two years, the biggest increase has come from Asia, and it is anticipated that demand will remain high for the next two years. In Europe, demand has stayed around the same for the past couple of years, but manufacturers expect to see it increase by as much as 5.1% over the coming two.
However, more localised studies show that in some parts of Europe, demand for asset finance solutions is already growing. A recent study carried out by the Finance & Leasing Association (FLA) showed that, in the UK, demand for this form of finance for the purchase of machinery and plant equipment was up by 22% year on year.
At DJB, we provide a range of financial products, including all kinds of asset financing. Over the past few years, we have seen demand for this kind of financing increase. Asset financing is viable for many firms, so if you would like to find out more and use it to provide your business with the cash it needs to expand or manage cash flow issues, please give us a call.
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