According to the latest statistics released by asset based finance companies, the use of asset finance among UK firms continues to grow with £29bn raised in total in 2015. This was the highest total for seven years.
The 29bn raised was 12% up on 2014 and shows that businesses are increasingly turning their attention to this alternative and often more convenient way to raise funds. The last time money raised through asset finance reached this point was in 2008 when a total of 30.8bn was raised by businesses.
The figures show that while businesses are now exploring other ways to raise money and positive about future growth, there is less trust in the banks when it comes to delivering the money needed to help business survive and flourish.
Access to finance will be important for many businesses who may be affected by the uncertainty surrounding a potential exit from the EU. Those businesses will be busy preparing for various scenarios which include a fall in the value of the pound and potentially more difficult trading conditions.
Asset finance is an excellent alternative to bank lending because it uses the assets a business already has at its disposal to raise funds.