After a record-breaking year for asset finance in 2018, the flourishing industry continues to show signs of growth for 2019.
In 2018 the asset finance market grew by 3%, hitting a new record level, with new business totalling over £33 billion.
As we entered 2019 the financial insecurity of Brexit was looming and it seemed uncertain whether this growth was sustainable, but statistics so far this year have shown continued growth.
Figures recently released by the Finance and Leasing Association (FLA) show that asset finance new business, for deals of up to £20m, grew by 6% in May compared to the same month last year. New finance for plant and machinery grew by 8%, as did commercial vehicle finance.
This follows the news that new business is up by 8% for the industry in the first five months of 2019.
It appears that more businesses than ever are turning to the asset finance industry this year for help growing their business.
In fact, according to the FLA, in the first quarter of 2019 the percentage of UK equipment investment being funded by asset finance stood at 38%, the highest it’s been for more than a decade.
It’s easy to see the appeal of asset finance to businesses. Acquiring assets and repayment is affordable, fast and uncomplicated when compared to applying for a traditional bank loan or overdraft.
Asset finance is currently the third most popular form of business finance after bank overdrafts and loans, helping thousands of businesses to obtain the assets that they require to develop and grow.
Here at Richmond Asset Finance, we provide a variety of flexible finance solutions including asset financeand refinance. For more information about any of our services, or to discuss your requirements in detail, give our team a call on 0113 288 3277.