Despite official reports stating that the UK is coming out of the recession it seems that we may still have a little way to go before we are back to the point where we were initially.
As a business, it is normal to be concerned about your finances, when you have a team of staff to think of and a responsibility toward your businesses assets, particularly when you may have difficulty accessing appropriate finance options to grow your businesses at the required rate.
It is estimated that even with the recent upswing in the economy, wages have not returned to the pre-recession rates for more than a fifth of senior staff nationally, after many of them had to take a pay cut and many small and localised businesses are still facing closure.
So does this mean now is not the time to set up a new business or invest? In short, no.
There is one particular industry sector that has seen extra growth thanks to asset financing.
According to figures released by the Finance and Leasing Association this month there was a 6% growth in new asset finance business for the month of May last year in comparison to May 2013 which can only mean that many businesses are seeking to resolve their growth anxieties by taking out asset finance.
Growth was seen more in the commercial vehicle sectorswith £475 million of finance being provided despite issues with EU emission regulations and £424 million raised against plant and machinery industries meaning that new business was up by 8% for asset finance.
The Head of Research and Chief Economist at the FLA said that the figures reflected the broader economic recovery, meaning that asset finance has never been more important as a finance resource, helping UK businesses invest in the economic growth for the future – this is a positive sign.
As an SME it is important to consider that asset finance is quite possibly one of the most cost effective methods of business growth in a changing economy. While many of you will consider going straight to your bank for funding it is important to note that there are numerous alternatives to bank lending and that we at Davies Corporate Finance can provide one of them.
In domestic life many of us have anxieties when approaching our bank for a loan and this extends further when you manage your own business, which is why it is important to consider all of your options, and carefully. We can help you do this and provide you with a variety of options to help your business grow financially.
While the figures show that many more businesses are choosing asset finance as a method of growth it still remains unfamiliar territory and many are unaware of just how applicable it can be.
However as a form of finance it provides a very flexible form of funding allowing firms to purchase new assets or unlock their own capital tied up in existing assets. This means that money can then be used to assist growth and aid new developments, quite possibly why its popularity has increased within the commercial vehicle and machinery sectors.
At Davies Corporate Finance we have access to an extensive panel of funders allowing us to arrange finance against most capital items that your business is likely to purchase.
Whether you’re a sole trader, limited company or well-established business we guarantee we will be able to find suitable asset finance funds to aid your requirements.
Our facilities include but are not limited to hire-purchase, lease purchase, finance lease and personal contract purchases.
For more information on how we can help you. Contact us today via our website or call our team on 0845 077 9117
Sources: National Institute of Economic and Social Research, FLA
