What do we know about 2019 so far?
In the world of Praetura Asset Finance, it has been a year of growth, development and progression; with new branding, new people, a new building, a new partner (with the acquisition of Kingsway Asset Finance) and a new securitisation funding line. If we were to ask SMEs to describe this year, it’s likely that ‘challenging’ would be a word we would hear several times.
Many small and medium sized businesses are reportedly putting growth and expansion plans on hold, as they wait to see when the ‘post-Brexit’ world is going to begin and what that world is going to look like when it does.
Despite all of this, the asset finance industry continues to grow. Figures recently released from the FLA report that total asset finance new business is up by 6% in the twelve months to August, compared with the same period last year. The numbers we ran at the end of last month at Praetura support this; our January to October figures show that 2019 is continuing to be our best year on record. The conduit funding that was unveiled at the beginning of the year, was a conscious decision on our behalf to ensure that we will have the resources available to provide the finance SMEs need, both now and in the future (regardless of whatever impact Brexit may have).
The refinance revolution?
Another key point noted from our analysis, is the significant shift in the number for refinance. Historically, refinance has tended to come in third place on the product list (behind hire purchase and finance lease). But this year, it has leapt into second place; with a 55% increase in the number of refinance deals and more than doubling the level of funding provided (comparing 2019 with 2018), knocking finance lease into third place, with a 36% share of the total amount lent across all products (a 14% increase on the previous year).
But are we doing enough?
More businesses appear to be taking advantage of the wide range of options that asset refinance can make possible. But are enough SMEs aware that releasing capital from their vehicles and equipment is an option? Do enough of them know that this straight-forward, affordable and risk averse method of funding is available to them?
Make use of the experts
We’re proud of the reputation we’re built at Praetura, and proud to be considered as refinance specialists. Whether you’re a business finance adviser, an asset finance broker or a business owner – our experts are your experts too, if you want to find out more about asset refinance, we’re more than happy to help, in whatever way we can!
Get in touch today by calling 0333 323 7805 or emailing enquiries@praeturaaf.com
