Firms Turn To Business Equipment Financing To Help Create Record Market
New asset finance business reached record levels in 2017 as UK firms increasingly turned to some form of finance to help boost growth and development, according to the latest figures from the Finance and Leasing Association.
In the 12 months to the end of December 2017, FLA members supplied almost £32 billion worth of asset finance to UK firms, up 5% on 2016. Plant and machinery, new cars and business equipment financing all recorded strong growth figures.
Strong growth for business equipment financing
New finance for business equipment was up by 7% throughout 2017 to more than £2.5bn and proved especially popular amongst smaller companies and SMEs.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The asset finance industry reported a record level of new business of almost £32 billion in 2017, despite challenging economic conditions and subdued business investment growth.
“The latest figures reveal that asset finance is a vital source of funding for SMEs when investing in business equipment and machinery. Of the total asset finance new business in 2017, £18.6 billion went to SMEs – 12% higher than in 2016.”
FLA members financed more than one-third of UK investment in machinery, equipment and purchased software in the UK last year.
What forms of finance were used?
Broker-introduced finance was the fastest growing form of funding that firms used for their business equipment purchases and was up 14% year on year.
At the same time, lease or hire purchase was the most popular finance method and grew by 8% during 2017.
In recent years, business equipment finance has grown significantly as more firms have become aware of the benefits offered by this flexible, cost-effective, risk-managed form of financing.
It provides a resource over and above a normal banking facility and, as such, is a useful additional source of funding that provides significant cash flow and tax benefits for businesses looking to finance new assets.
What are the benefits of business equipment financing?
New business equipment financing has grown because of its simplicity and flexibility as a funding method for capital or commercial equipment and a whole range of asset types.
The ease of use of this form of asset finance means that it’s suitable for all types of business, from start-ups to existing businesses investing in new equipment and major companies investing in substantial new equipment assets.
The reason for this, other than available tax benefits and the ability to budget more easily, is that on most occasions the equipment itself can be used as security, which makes key business equipment financing a very accessible form of funding.
Looking for advice on business equipment financing?
Investing in new equipment can be a big decision for any business, and it makes good business sense to think about how best to finance your investment.
However, funding new business equipment doesn’t have to be a daunting prospect and your asset finance broker should be able to steer you along the right path.
At Anglo Scottish, our team of finance specialists have years of experience arranging equipment finance for a variety of businesses from different sectors.
These include, but are not limited to:
- Plant and machinery equipment finance
- Catering equipment finance
- Agricultural equipment finance
- Printing press equipment finance
- Construction machinery finance
We can help your business develop, supporting you in financing new equipment, or replacing old and obsolete assets that might be holding your business back.
When it comes to equipment finance, the team at Anglo Scottish can offer the expertise, experience and support necessary to organise, set up and manage your agreement.
As experts in corporate asset finance, we also pride ourselves on understanding any business sector, whether it’s farming, catering, printing, healthcare or many more.
Our asset finance managers have years of experience, enabling them to make the right recommendations and enable you to get the most from your business equipment finance solution.
Want to find out more about your equipment finance options? Get in touch with Anglo Scottish Asset Finance today