The number of leasing companies closing their books to new business jumped 38% in 2013 to 22, according to services company LPM Outsourcing (LPMO).
Throughout 2012 the number of leasing companies putting their portfolios into run-off, that is, closed to new business but maintaining portfolios, was 16.
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The closures of leasing company’s portfolios came mostly from banking subsidiaries as they prepare for Basel III regulations and the increase in capital requirements.
According to Ian Dennis, business development director of LPMO, the reason could be that many banks do not see leasing as a core business.
Other houses have sought to fill the gap in financing, but despite this the market for new leasing deals remained flat at £21bn (24bn) in 2013, according to the latest Finance and Leasing Association figures.
Dennis said: "Many new entrants have made a very well publicised push into the SME market, but increasingly we are also seeing some of the newer providers teaming up with manufacturing companies to provide dedicated vendor financing support to their products."
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By GlobalDatamike.cobb@timetric.com
