Asset financing continues its steady rise

Recent data released by the Finance & Leasing Association (FLA) revealed that the asset finance industry has seen a 12% growth in the use of its services.

The amount lent to UK businesses by asset financing providers has surpassed the £25bn point, which has not happened for over five years. Much of this growth came from the machinery finance sector.

The results reflected the transactions carried out during November, 2014. During that month, financing for machinery and plant rose by 14%, while the business equipment sector grew by 25% in comparison to November of 2013.

Geraldine Kilkelly, who is the Chief Economist and Head of Research for the FLA, commented:

“November was another month of solid growth for the asset finance industry, with good performances in key sectors. Asset finance, primarily leasing and hire purchase, is particularly popular with SMEs because the success rate on application for micro, small and medium sized businesses is the highest of all the major finance options.”

IT equipment finance showed the biggest growth, with demand for that type of financing increasing by 40%. The call for finance related to commercial vehicles also grew, but only slightly. For commercial vehicle finance, demand was up by 2%, while car financing rose by 8%.

At DJB, we offer many funding solutions, including asset finance. If you want your company to benefit from this innovative form of business arrangement, please get in touch. We can help virtually any firm to secure the capital it needs to grow its business.

Disclaimer: The information contained in these articles is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.