In 2015, British and Irish-based businesses are expected to apply for over £20bn in loans from asset finance brokers.
The Asset Based Finance Association (ABFA) made the announcement after it collated the results of its Annual Confidence Survey. Its members said that they were expecting to provide £20.8bn in asset finance to firms across the UK and Ireland this year.
Growth is coming about as more British enterprises are discovering alternative ways to raise money, such as borrowing cash against unpaid invoices, or securing loans using the collateral tied up in their assets as security. Many UK companies own their own machinery, IT equipment and vehicles, but all of these high-value assets can be used to secure loans.
A number of businesses began considering these alternative ways of borrowing after traditional financial institutions started to turn down more loan applications from SMEs.
The asset based lending industry is also expecting to see growth once new rules are introduced, which will mean that when a bank turns down a firm for a loan, it will need to tell the enterprise about alternative lenders who may be able to help. Asset lending specialists are expecting to see potential clients being sent to them as part of that scheme, which should fuel demand further.
At DJB, we specialise in asset financing. Over time, we have helped all kinds of organisations to secure the money that they need to grow via business cash flow solutions. If you would like to find out more, please give us a call.
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