The British Business Bank has published the first in a yearly series of reports looking at SME funding.
The BBB 2014 report recognised that asset finance for vehicles, i.e. leasing and hire purchase, have been playing a substantial part as forms of funding for small businesses over the past year.
We welcome the British Business Bank’s recognition that asset finance is a market solution to the problem of small business lending
Director General of the Finance & Leasing Association (FLA), Stephen Sklaroff, said;
“We welcome the British Business Bank’s recognition that asset finance (leasing and hire purchase) is a market solution to the problem of small business lending, that it has a very high application success rate for the many SMEs which already use it, and is an important part of the UK’s investment recovery story.
“The BBB also recognises that asset finance will play an important role in the small business finance markets in future, and we look forward to continuing to work with them to ensure that even more SMEs are made aware of the advantages of asset finance.”
Last year, FLA members contributed £89 billion of new finance to UK households and companies. £22.4 billion of finance was provided to businesses and the public sector and FLA members financed nearly 27% of UK investment in equipment, machinery and purchased software in the UK during the same period.
