Confidence is at an encouraging high among
leasing brokers, with around three quarters of respondents to a
recent survey believing their business volumes will increase in the
next year.
In a six month survey of 64 of its brokers,
Investec Asset Finance found 49.1% believed that their business
volumes would grow between 5-15% in the next year, with a further
28.1% saying theirs could grow by more than 15%. The remaining
22.8% said that their business would stay at current levels,
meaning that no brokers thought their business would decline in the
near future.
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John Worton, joint chairman of Shire Leasing,
the UK’s largest leasing broker, agrees with the report’s
optimistic outlook. He said Shire expects to see growing volumes as
supplier driven volumes head back towards pre-recession levels,
“not necessarily hitting the numbers – but getting bigger”. At the
same time, he said, direct customers are continuing to turn to
leasing as banks remains cautious about providing finance.
The survey also examined the most important
factors for brokers when choosing a funding provider. Most
important was ‘competitive funding rates’, with 75% of brokers
citing it as one of their three most important factors. That was
followed by ‘speed and consistency of credit decision’, with 65.6%
and ‘quality of day-to-day business relationship’ with 37.5%.
Tony Devenney, operations director for Kennet
Equipment Leasing, another large UK broker, said that while funding
rates are important, they are “not necessarily the deciding factor”
in brokers’ choice of funder relationships. Devenney believes the
first priority for introducers is finding a provider who will
approve customers, saving the need to waste time looking for ‘rates
that will never get approved’.
He did agree that speed was important:
“Getting the deal done quickly and efficiently for a customer is
vital; if you have to wait a week to get a finance decision, it’s
not acceptable, and your status can look poor.”
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By GlobalDataMartin Harries of Investec said of the survey:
“We are pleased with the results of our annual survey of financial
leasing brokers, and particularly with the optimism that emanates
from this survey. Over 78% of brokers believe that their
business will grow substantially in the next 12 months, which is
highly encouraging.”
