Asset finance new business up 6%
Total asset finance new business was up by 6% in the 12 months to August when compared to the same period last year, figures from the Finance and Leasing Association (FLA) have shown.
There was a total of £2,452m in new business in August, the same amount as in August 2018.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The asset finance market reported 7% new business growth in the first eight months of 2019.
“The strong performance of the industry so far this year meant it funded over 41% of investment in machinery, equipment and purchased software in Q2 2019, an 11-year high.”
Chirag Shah, chief executive at Nucleus Commercial Finance, added: “We’re seeing more and more SMEs turn to asset-based finance to support their business ambitions, whether that be to restructure, deliver further growth or to enhance their cash flow.
“As banks become more risk-averse and reluctant to lend to small businesses, there is a huge opportunity for the alternative lending market to fill this void and ensure SMEs have access to the finance they need
“Despite the growth in the market, a major knowledge gap still exists when it comes to SME funding, particularly how asset-based lending solutions can be used to help businesses achieve their goals by leveraging assets such as property, stock and machinery.
“There is a big opportunity for the market to continue growing and it’s therefore our responsibility as an industry to educate SMEs on all the options available and to demonstrate the positive impact alternative finance can have on a business.”