Figures released by Finance and Leasing Association show 5% increase in 2012 deals
Small businesses are increasingly turning to asset finance deals to bring in revenue, with a 5% rise in deals over the past year, new figures have shown.
The statistics released by the Finance and Leasing Association showed that £20.6 billion of deals worth up to £20 million were concluded last year. It represents a continued rise in the popularity of asset finance despite a steep drop in new business last December.
The deals, which allow businesses to obtain short-term loans by using business assets as security, were particularly popular in the plant and machinery, IT equipment and used car finance sectors, with each reporting a double-digit percentage rise in 2012.
Julian Rose, Head of Asset Finance at the Finance and Leasing Association, commented: “More firms, especially smaller ones, are seeing asset finance as an affordable solution to their business equipment investment needs, but more can be done to further increase awareness.
We launched the Small Business Finance Directory website last year to help businesses find asset finance brokers and lenders in their local area, and are currently discussing with Government ways for their proposed Business Bank to promote further take-up of this important source of finance for small firms.”