The rise in IT and software leasing in the UK in the 12 months to April 2013, up 13% year-on-year to £1.38bn, is the result of more and more vendors seeing the sales-aid benefit of asset finance, according to Syscap’s Philip White.
The independent IT lessor pointed out that these statistics, released by the Finance & Leasing Association, came despite an increasing tightening of bank lending, which fell by nearly £3bn in April.
Syscap chief executive Philip White said: "IT leasing is continuing to grow apace, as more and more vendors are seeing asset finance as an ideal way to secure sales which would otherwise stall given the continued reluctance of banks to lend, and businesses become increasingly comfortable with the concept."
"Many companies that put investment plans on hold during the recession are now desperately in need of new equipment and upgrades or they risk losing their competitive edge."
"Without the option of asset finance many firms, particularly SMEs, would really struggle to swallow the upfront costs of a major IT investment. Many simply wouldn’t be able to afford it at all."