Demand for asset finance rises due to COVID-19 strain
In a possible sign of the impact the COVID-19 lockdown is having on the economy, Edinburgh Asset Finance has reported an increase in demand among both individuals and businesses.
The firm has reported a steady growth in interest from clients who have not previously used its asset finance facility, as well as significant strategic positioning by existing customers.
Neil Mitchinson, director of Edinburgh Asset Finance, said: “By week three of the crisis, we were seeing a definite increase in contact from individuals who have never previously used our services.
“In these times, our product is extremely viable for the challenges faced by many individuals and business owners, so we are expecting things to get steadily busier.”
Edinburgh Asset Finance is, for the duration of the crisis, extending the service to employers that are facing short-term liquidity problems while dealing with the immediate costs of shutdowns.
Edinburgh Asset Finance is willing to advance up to 60% of the value of a range of assets worth in excess of £3,000; these must be personally owned, as company-owned assets are not eligible.
This service aims to help employers bridge the gap until government funding becomes available; Chancellor Rishi Sunak announced that the job retention scheme would likely be paying out within the next six days.
Mitchinson added: “While we all hope to get through this, it would be hard if businesses with a viable long-term future were irretrievably harmed by a temporary funding shortfall, and we are keen to help them meet the challenges they are currently facing.”