Demand for asset finance is on the rise as investment for growth remains a leading priority for businesses
Investing in your business for growth using asset finance makes it a much easier to achieve your ambitions. A lot of companies are using asset finance as the means to purchase a variety of essential business assets which in turn helps to preserve working capital as well as enable the business to expand.
Conventional Loans on the Decrease
Just five years ago, a study by Asset Based Finance Association (ABFA) revealed that conventional loan activity among smaller UK based businesses had declined significantly compared to the increase in businesses using asset finance instead. The increase in asset finance usage is a trend that has continued to this year and doesn’t look like changing any time soon. This is in part due to the difficulty smaller businesses face when trying to acquire bank loans and unsecured finance.
Small businesses are usually the type of firms that require financing due to capital shortages, which is why asset finance providers such as Prolease have been able to help so many small and expanding businesses.
Asset Finance Helping Small Businesses to Grow
The other significant element of the decline in conventional financing is the improvement in the asset finance options available to all kinds of businesses. There are now a wide variety of options available through asset finance specialists like Prolease Finance, through whom businesses of all types and sizes can find the funding they need to acquire their crucial business assets.
Asset finance is growing so popular simply because it enables smaller businesses to invest their funds directly into their own operations without depleting their company’s capital or acquiring significant debts.
It is even good news for the lenders, as asset finance allows them to provide loans with a much lower risk of default. With the variety of options available, such as hire purchase and lease finance (to name but two), both businesses and lenders are able to help each other keep expanding their operations and increase profits, which is what business is ultimately all about.
If you would like to learn more about how your company could use asset finance to acquire important business assets, contact Prolease Finance and our friendly personal team who can help you decide which option is better for your business.