To have grown new business volumes each year since 2005-2006, and be predicting further uplift this year, is an enviable performance for an asset finance brokerage. The unbroken growth trajectory took place at franchised broker network Asset Finance Solutions partly because it snapped up experienced sales people at the height of the crisis in 2009.
In a letter to the trustees of the IFRS (International Financial Reporting Standards) Foundation trustees, the leasing lobby also called for issuance of the final standard to be delayed for six months to the end of 2011. The group, comprising Australia, Canada, China, Japan, Leaseurope, and the US, and global manufacturer bodies, stated that re-exposure is necessary because there are still areas of the proposals where it is unclear that conceptually sound principles or sufficient simplification have been achieved”.
Many asset finance providers have found it tougher to secure new lines of credit since the 2008 financial crisis. Funding is at a premium, some funders have less appetite for asset finance than in years gone by, and others are pulling out of the market altogether
Super-brokers are expected to emerge as a power bloc within asset finance, but not for at least 7 to 12 years. Factors such as cost benefits and the age profile of an industry drawing closer to retirement are likely to drive the growth of bigger groups and franchises. Mark Picken, ING vice-president, speaking at the National Association of Commercial Finance brokers asset finance seminar in London on 1 March 2011, said: “The days of the super broker is still 7 to 12 years away
As Leasing Life went to press, the 2011 Budget was being read out in the UK parliament. A cut in fuel duty of 1 pence per litre could be seen as a drop in the ocean considering the other upward price pressures on petrol
Responses to the Budget were variously critical and praising, with disagreement over whether or not the measures will enable economic growth. The measures announced in todays Budget are not about to solve the central issue facing UK SMEs, which is the lack of funding available to support business growth
De Lage Landen has achieved continuous growth in its portfolio over the past five years, and reported a bounce back in net profit for 2010. The leasing giant benefited from remaining active in the global market place and being among the lessors with funds available during the recession.