Economic confidence is slowly returning, and businesses across the UK are now either searching for new equipment to replace outdated equipment, or they’re investing in new technology as a result of rapid growth over the last 12 months.
Research suggests that asset finance has grown in popularity with SMEs during the pandemic. New figures from the Finance & Leasing Association (FLA) show that total asset finance new business grew by 1% in February 2021, compared with the same month in 2020.
Why are businesses turning to business equipment finance?
While asset finance is a well-established form of funding, more companies are only just waking up to the idea of its benefits, particularly as the demand for technology grows even bigger.
Businesses have been looking for alternative methods of funding to the traditional bank loan, and also to provide solutions to more specific funding requirements – this is where asset finance provides a resource that out-matches a normal banking facility. It’s a useful source of funding that provides significant cash flow and tax benefits for businesses in need of new equipment or other fixed assets to expand. In addition to this, the flexibility and simplicity of this type of funding means that most businesses can benefit from it, whether you own a pizza restaurant that decides it wants to innovate with the very first pizza dispenser in Scotland, or your scaffolding business requires an extra van and more equipment.
Other than available tax benefits and providing you with the ability to budget more easily, asset finance also provides additional security, making it a very accessible form of funding. The government has also recently announced a temporary tax relief on qualifying capital investments from the 1st April, making asset finance a very appealing option right now.
Use cases for business equipment finance
Take a look below at how our customers used asset finance to replace older equipment that was causing problems or to finance new corporate assets.Sector: Scaffolding Business
Requirement: The business required a large investment in equipment to keep up with the current demand for the hire of scaffolding.
Sector: Chauffer Business
Requirement: The business refinanced assets to help raise cash to adapt the cars with some innovative ideas to social distancing.
Sector: Steel Supplier
Requirement: The business purchased new hybrid vehicles to help with local deliveries.
Sector: Hospitality Business
Requirement: Our client brought the first pizza vending machine to the UK to help diversify the business.
Sector: Engineering Business
Requirement: The business required funds to help with the growth of the business. The business had an increase in orders due to manufacturers bringing the work back to the UK.
Our support with business equipment finance
We’ve dealt with hundreds of businesses over the last 12 months, who have come to the realisation that asset finance can support their growth and matched them with lenders who can build a specific funding solution for their specific needs.
Funding new business equipment doesn’t have to be a daunting, or extensive prospect – with the right financial broker at your side, you could have the equipment you require in no time, from Construction machinery finance right through to IT equipment.
You also get the added bonus of working with our customer-centric team, who will go above and beyond to match you with the right solution.
If you’d like a free quote on this, simply fill in the form here we’ll be in touch.
Alternatively, if you’d like to have a quick chat about how we can help you improve your cash flow and keep your working capital free, book a slot in our meeting calendar now.