The UK asset finance industry developed 9% more business in January 2014.
Key asset sectors such as machinery finance, actually reported double digit growth year-on-year, according to figures released from the Finance & Leasing Association (FLA).
Asset financing is vast and covers a variety of lending and payment options commonly related to physical assets such as vehicles, IT Equipment and plant machinery. This typically involves lease or lease like structures. This can mean hire purchase arrangements, operating or finance leases, or even sale and lease back arrangements, offer a convenient method of raising cash quickly.
Statistics show that asset finance is an increasingly attractive alternative option for growing businesses that are not able to access conventional support from banks.
Commercial vehicle finance has seen the strongest growth compared to last year with a 25% rise in finance to £420m in January. Business equipment also grew by a great 21% to £159m, plant and machinery increased 13% to £343 and IT equipment 3% to £68m.
Banks’ lending to businesses still remains low, and fell in 2012, but there are many alternative options out there, including asset finance which has grown by 5% since 2012.