In the wake of the departure of ING Lease from UK asset finance, Lombard’s business and commercial head has emphasised the Dutch firm is leaving a growing lending market.
ING announced its decision to wind down its UK leasing operation at the end of October because the division was deemed no longer in-line with the group’s strategy, despite being a highly profitable business.
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Ian Isaac, managing director of Business & Commercial at the UK asset finance division of Royal Bank of Scotland, said Lombard was sorry to see ING Lease leave at a time when the use of leasing was on the increase.
He said: "While we understand that the reasons behind ING’s decision are connected to a wider global business strategy rather than local product performance, we are sorry to see such a respected player leaving the market at a time when asset finance is becoming an increasingly important funding method for UK businesses."
Isaac pointed to the latest figures from the Finance & Leasing Association (FLA) which show leasing has grown 6% in the nine months to the end of September while overall aggregate lending has decreased and said he expects that growth to continue.
"Asset finance is a very accessible product that has come into its own during the economic downturn," said Isaac. "We believe that, as a form of funding, it will continue to grow as the economic climate improves."
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By GlobalDataIsaac said Lombard has seen a 16% year-on-year increase in lending year-to-date to October with growth of 77% in lending to the manufacturing sector, 22% in the agriculture sector and 50% growth in lending to the commercial transportation sector and added the firm was committed to continue lending to UK businesses.
