2017 so far has been a year more synonymous with uncertainty than anything else, largely thanks to this year’s snap election and the ever-present shadow of Brexit looming large.
But there have been positives too. The latest stats from the Finance & Leasing Association show continued growth for the asset finance industry, with new business growing by 9% in the first seven months of the year. 2017 is also shaping up to be another record year for Praetura Asset Finance, both in terms of that amount that has been lent to SMEs, which has increased by 28% (compared with the same period in 2016) and the number of businesses they have provided finance for, throughout the UK.
An alternative route to business finance
What is asset finance? In a nutshell, it’s an cost-effective way for businesses to fund vehicles, equipment and machinery, through hire purchase and leasing. Or, with asset refinance, companies can unlock capital from existing assets to use in a myriad of different ways.
A notable statistic from Praetura is the increasing popularity of refinance, with the number of SMEs they have assisted having risen by more than a third, with a 40% increase in the total amount lent.
Refinance offers an alternative route for a business to raise funds, by making use of the assets it already has (while continuing to be able to use them). Whether the cash is needed for expansion or restructure, to be able to take on new projects, consolidate debts, pay off an overdraft, settle HMRC arrears or something else; refinance is a straightforward, affordable and risk averse solution.
Client-focused and flexible approach to lending
Ric Simmons, regional sales director at Praetura Asset Finance commented: “With refinance deals in particular, working with a ‘consultant lender’ can make a massive difference. I’m sure the surge we’ve seen is largely due to our client-focused and flexible approach to lending.
“We always take the time to understand a business, so we can tailor the funding and adapt the terms to their specific circumstances.
“Being independent helps enormously too; we’re not restricted by mountains of red tape, procedures or set ways of doing things. Plus, the decisions we make are not based on whether we can tick a series of boxes on a computer screen, their based on our knowledge and understanding of the companies themselves and their plans for the future”.
We can’t be certain about what’s going to happen next, or what the implications over the coming months of a minority government or Brexit will be. But we can be certain small businesses throughout the UK should not be afraid to invest and more should possibly consider looking beyond the banks, to see what other routes to finance are open to them.
To find out more about the solutions that asset finance can offer to your business, speak to your broker or financial adviser and ask them to refer you to Praetura Asset Finance today.
Alternatively, request a callback or email firstname.lastname@example.org. We’d love to hear from you!