Despite the lack of liquidity
available to UK SMEs at present, there is no doubt that more and
more small businesses are becoming aware of the benefits of lease
finance.
In every sector, the trade press is
filled with articles explaining leasing to first-timers, as
manufacturers set up own-book leasing programmes or small-scale
vendor programmes.
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Take veterinary scanning technology
manufacturer BCF Technology, which last month set up an in-house
leasing scheme for three of its products: the MicroMaxx and DP6600
ultrasound scanners, and a Kodak/Carestream digital radiography
system.
Digital radiography systems are particularly
good showcase products for leasing as they require less manpower to
run than analogue machines, making them good investments for
smaller practices, but command a much higher price.
Then there is worldwide aquatics and pet shop
fittings supplier Casco, which saw its UK arm set up a vendor
agreement with innovative broker Johnson Reed last month.
The scheme was publicised via several articles
in the pet retail trade press, which explained the process of lease
finance using car lease analogies, to a market that has probably
never been exposed to asset finance outside of consumer car
finance.
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By GlobalDataThe good news for lessors is that when credit
conditions become less tight, there may well be more customers –
and in a greater range of sectors – keen to pursue asset finance as
a way of funding their businesses.
The bad news is that there will most likely be
a lot more in-house programmes to compete with.
Fred Crawley
