£29bn raised by businesses using asset finance in 2015
UK companies are turning their backs on traditional funding with leasing up 12% on 2014
UK businesses are increasingly looking to non-bank finance with over £29.1bn secured through asset finance and leasing in 2015; research from LDF has suggested.
Asset finance jumped 12% in 2015 up from £26bn in 2014 – marking the highest level since the £30.8bn secured in 2008.
The report indicates that demand for asset finance – which enables companies to borrow the cost of a capital investment upfront and repay it over fixed monthly payments – is surging and claims that this is partly due to the fact that businesses owners are now more aware of the “benefits of leasing”.
The research follows a recent partnership by LDF with the British Business Bank to “significantly increase” the supply of asset finance and leasing with a £51m funding facility.
Peter Alderson, managing director of LDF, commented:
“As the amount of borrowing through asset finance approaches pre-2008 levels, many UK businesses are optimistic and looking to make the investments that may have been put on hold over the last few years.”