UK businesses raised £29bn via asset finance in 2015
Use of leasing has hit a seven year high - up 12% since 2014 - as companies increasingly turn to non-bank finance
Appetite for asset finance among UK businesses has hit a seven year high with over £29.1bn secured through leasing last year; a report by finance provider LDF has claimed.
According to the research, use of asset finance jumped 12% in 2015 up from £26bn in 2014 – marking the highest level since the £30.8bn secured in 2008.
The research suggests that demand for asset finance, which allows companies to borrow the cost of a capital investment upfront and repay it in fixed monthly payments, has soared as more businesses have turned their back on traditional bank loans and have become more aware of the “benefits of leasing”.
Earlier this month, the British Business Bank announced a partnership with LDF to “significantly increase” the supply of asset finance and leasing with a £51m funding facility.
Commenting on the research, managing director, Peter Alderson, said:
“Leasing has become increasingly popular amongst small and medium-sized enterprises as a catalyst for growth, especially given the difficulties many still experience in sourcing finance through traditional means.
“As the amount of borrowing through asset finance approaches pre-2008 levels, many UK businesses are optimistic and looking to make the investments that may have been put on hold over the last few years.”