Starting out as a new business in the wake of the economic downturn couldn’t be tougher when your business, organisation or enterprise relies on other assets and their acquisition for growth.
However as a financing option, asset finance makes this difficulty one less thing to worry about providing the option for growth through a flexible loan approach which allows businesses to obtain the required assets so that they can develop while protecting their cash flow, earn tax benefits and profits too.
A valued alternative to the bank loan this financing option allows loans to be secured against the asset being financed with the additional advantage that the asset being financed cannot be withdrawn throughout the entire length of the contract.
And now, according to recent figures released by the Finance and Leasing Association (FLA) it appears that asset finance new business experienced a growth of 10% during April 2014 when compared with April 2013.
The figures show that new businesses as a result of asset finance was recorded at just over £2 million during April this year.
Commercial vehicle and machinery industries reported new business increase of 27% in April 2014 compared with 2013 while asset finance for IT equipment reported a 29% increase.[1]
This is the seventh consecutive month of growth in new business thanks to asset financing solutions which is probably why the Queen in her speech to parliament earlier this month announced a bill, informing the May 2015 general election, offering small and medium business enterprises (SMEs) the financial lifeline of asset finance.
In her speech the Queen said: “The Bill will support small businesses by cutting bureaucracy and enabling them (businesses) to access finance” in hopes that the UK will become one of the most appealing countries to begin and cultivate successful businesses.
It is also suggested that the Bill will include laws which will compel banks who turn down business loans for new start-ups to notify the borrower of alternative sources of financing options including invoice finance and asset finance.
This is excellent news if you plan to start a new business as you will be encouraged to see the potential of alternative lending solutions such as the ones that we at Davies Corporate Finance provide.
At Davies Corporate Finance we provide new businesses and SMEs with an array of options under asset finance which can fund growth by lending against capital items that a business may wish to purchase.
If you’re a sole trader, limited company or completely starting up from the beginning we can help you with our finance services provided across the UK however we mainly operate in the following areas: Stoke on Trent, Crewe, Nantwich, Cheshire, Chester, Wilmslow, Knutsford, Macclesfield, Norwich, Buxton, Chester, Warrington, St Helens, Preston, Shrewsbury, Telford, Liverpool, Birmingham, Derby, Stafford, Cheshire, Chester, North Wales and Manchester
Are you reinvesting in new assets?
Considering new premises and require mortgage advice?
Or, are you considering changing your bank provider and lending facilities?
Whatever you’re planning on doing for your business feel free to browse our website for our range of financing options and if you have any questions our friendly team of specialists will be more than happy to assist you further.
Encourage growth in your business and contribute to the growth of asset finance new business.
[1] www.credittoday.co.uk
