Figures released by the Finance & Leasing Association (FLA) show that asset finance has prospered throughout 2014, with new business volume growth up 13 per cent on the previous year – the strongest annual growth rate for over seven years.
With the impact of the 2009 recession on the wane and confidence amongst SMEs increasing, this healthy rate of growth looks set to continue in 2015.
SMEs are recognising the importance of asset finance and fortunately, issues regarding access to funding are also being overcome through new incentives such as the British Business Bank helping to boost lending.
The FLA figures also revealed that businesses have been using leasing and hire purchase to invest in a wide range of assets, with particularly strong growth in new finance for production plant, agricultural equipment and construction equipment.
Sectors forecast to have the best prospects for growth in 2015 include construction, P&M, healthcare and IT/business equipment. Whilst in the vehicle sector, trucks and the alternatively-fuelled car sector are also set to prosper.
Asset finance, particularly leasing and hire purchase, are growing in popularity with SMEs not least because the success rate on application is the highest of all the major finance options.
For specialist advice or more information, call Praetura Asset Finance today on 0333 323 7800.