The UK’s Finance and Leasing Association (FLA) has produced data, to be released to the press tomorrow, shows productivity among FLA members providing asset finance (leasing and hire purchase) is almost 7 times higher than the national average.
The research carried out by Oxford Economics measures FLA members’ contribution to the UK economy in 2014.
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The level of productivity for the asset finance industry, measured in terms of output per worker, puts it in the top 2% of all UK industries.
In 2014, FLA asset finance members provided £26bn (36.29bn) of new finance, primarily through leasing and hire purchase, to support investment in all kinds of equipment by UK businesses. This represented almost 28% of all UK investment in machinery, equipment and purchased software. About 60% of asset finance new business went to small and medium sized enterprises last year.
Simon Goldie, head of asset finance at the FLA, said: "Leasing and hire purchase can make the difference between firms getting the equipment they need to thrive, or being left behind. Asset finance should be part of the conversation any business-owner has when thinking about investment."
