Use of leasing by businesses has hit a five-year high, with a 10% jump in the last year. More businesses are now choosing to secure crucial funding through asset finance as the confidence needed to kickstart capital investment grows.
Recent figures from the Finance and Leasing Association show that the amount borrowed by businesses though asset finance has risen from £21.7 billion in 2012/13 to £23.9 billion in 2013/14.
As demand grows from SMEs to fund upgrades to their IT systems, office refits and other assets such as commercial vehicles, we at LDF are expanding our capacity to provide asset finance to businesses.
Our Managing Director, Peter Alderson, explains: “More businesses are using leasing to invest in assets to drive growth, and that’s a sign that an increasing number of SMEs are recognising the benefits of dealing with lease finance providers – relative ease of access to funding, quick decision times and predictable costs.”
“As the economy improves, SME’s are seeing order book growth and are looking to catch up on several years of delayed investment. While many other forms of lending remain relatively constrained, the availability of asset finance makes it hugely attractive in comparison.”
At LDF, we really believe in helping SMEs to grow and that is why we are increasing our funding through asset finance brokers to meet increased levels of demand from small businesses.
Our expansion plans are supported by systems that give brokers and their customers some of the fastest decision times in the asset finance industry. We can provide brokers with decisions on credit applications in an average of four to five hours.
Peter Alderson adds: “As more businesses are realising the benefits of leasing, we at LDF are stepping up our offer to SMEs and providing more funding than ever before on our own book.”
“A key feature of leasing for businesses is the reliability it offers them. A quick decision and immediate funding means that they can focus all their efforts on growing their businesses as soon as possible, rather than being on pause for a lengthy period of time before a decision is made.”
“Our relationship with our broker partners is set to become much closer over the coming months as we ramp up the funding we provide.”
Source: Finance and Leasing Association
*Year end July 31 2014