Three-quarters of UK asset finance providers
expect lending to SMEs to increase despite a pessimistic outlook
for the economy.
The February Asset Finance Confidence Survey,
conducted by UK leasing trade body the Finance & Leasing
Association (FLA), found 74% of respondents expected lending to
SMEs to increase in the next three months, a 6% increase from the
previous month, and 77% expect it increase over 12 months.
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In the same survey, 39% of lessors anticipate
the UK economy will get worse in the next three months with the
remaining 61% expecting no change. 72% believe the economy will
show slight improvement over 12 months.
Geraldine Kilkelly, head of research and chief
economist at the FLA, said: “The cautious optimism shown in the
survey reinforces our message to the Government that asset finance
has a key role to play in improving the supply of credit to
SMEs.
“Asset finance helps small businesses get the
equipment they need to compete in tough trading conditions. It is
an affordable alternative source of finance for a huge variety of
products and equipment.”
The findings of the FLA survey broadly reflect
the results of a Leasing Life survey which found the
majority of UK lessors expect will grow despite being unsure of
wider economic growth until 2015.
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By GlobalDatagrant.collinson@vrlfinancialnews.com
