Here’s a shocking statistic: British businesses continue to miss out on billions of pounds in sales each year simply because they don’t have the equipment needed to produce goods or services required by customers.
In addition, around 40% of firms turn away orders as they lack capacity to fulfil them.
When the recession hit, businesses were forced to batten down the hatches and slash spending in order to keep afloat, yet almost seven years on, many are still unwilling or unable to invest.
For small to medium-sized businesses this issue is particularly acute. SMEs have a smaller client base than their larger counterparts and in turn, cannot afford to turn away new business.
But as credit availability remains at an all time low and with the banks reluctant to borrow, it’s easy to see why asset finance is fast becoming the default lending option.
According to the National Association of Commercial Finance Brokers (NACFB), asset finance is the main driver behind boosting SME lending to pre-crash levels. Hire Purchase (HP) deals in particular have shot up by 19 per cent in the last year, as firms look to acquire new equipment.
HP contracts enable the purchase of costly equipment through a fixed repayment plan. The same as when buying a car on finance, the assets remain the property of the lender until the final repayment is made, upon which, ownership is transferred to the business.
As Britain’s thirst for alternative finance products shows no signs of abating, ensure your business doesn’t get left behind and call Praetura Asset Finance today on 0333 323 7800.