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%.
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