While the asset finance sector continues to grow as a source of funding for SMEs, businesses remain hesitant to take advantage of this and other funding options stifling their ability to grow.
This conclusion was drawn after one survey found that more than a third of SME business owners look to avoid borrowing money at any cost.
Asset finance for new business grew six percent year on year in the month of July in deals of up to 20 million. Overall, however, new business fell when higher value deals were taken into account indicating the reluctance to borrow mainly affects the owners of businesses in need of higher than average levels of funding.
The figures released by the Finance & Leasing Association (FLA) did report a more positive trend on the plant and machinery sector with new business rising 20% year on year in the month of July.
The findings show that asset finance remains a vital part of the funding needed to support businesses and in turn the UK economy. The British Chamber of Commerce this month painted a gloomy picture of the UK’s economic prospects Vs the Eurozone.
This only increases the importance of the contribution made by the asset finance industry to future prosperity following Brexit.