Mark Sismey-Durrant, chief executive officer at Hampshire Trust Bank, says it’s up to the leasing market to keep up with client’s demands regarding business-led economic growth.
With the introduction of Amazon’s one hour delivery service and the increasing expectation of next day delivery from consumers ordering goods from all over the world, businesses are now challenged to keep up with the high demand of quick deliveries and prompt shipping dates.
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As a result, many companies are boosting courier and delivery services as highlighted by the recent Finance and Leasing Association figures which revealed a 10% increase in cars and vans bought on finance by businesses this year. This surge of firms securing finance for vehicles is also reflected in our own asset finance lending figures. We have seen double the business of firms buying LCVs (vehicles up to 3.5 tonnes) than we anticipated this year.
The wider economy has given companies a boost too. The ongoing strength of sterling means that UK buyers are able to achieve better value for their money, and they’ll have significant bargaining power due to the majority of vans in the UK being priced in Euros.
However, with a potential gloomier outlook for the UK economy, thanks to a combination of slowing GDP and reports* in the past month that consumer spending is expected to slow down in the next three years, means we need to adjust our focus to business-led economic growth.
Significant investment in British business is exactly what the country needs to ensure UK firms can compete on a world stage. We believe that focusing on the UK’s smaller businesses is the road to accelerating UK growth.
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By GlobalDataFor many multi-national firms a few extra vehicles might not seem like much, however for a small business buying an extra car or van can have a significant financial impact. Many of the companies we work with have experienced difficulties with the larger banks and financing has been decline due to a ‘tick-box’ system.
That’s where the challenger banks are able to help. Our asset lending team works hard to provide leasing finance and hire purchase for SMEs across the UK so these businesses can maximise the opportunities available to them.
Through offering an increasingly flexible approach to finance it’s our job, as challenger banks, to champion SMEs across the country and ensure they’re not left behind when competing against larger and online competitors from across the globe.
UK businesses are undoubtedly on the right road to success and the banking industry and government needs to work together to ensure these companies can access the right finance to make the most of consumer demands.
* EY Item ITEM Club Autumn Forecast
Mark Sismey-Durrant, chief executive officer at Hampshire Trust Bank
