Asset finance accounts for one third of all UK SME financing,
according to a new survey.
The survey, conducted for the Finance & Leasing Association
(FLA) by the Open University Business School, reveals that 33
percent of UK SMEs are now using asset finance, compared with 25
percent in the third quarter of 2007.
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Commenting on the results, Stephen Sklaroff, director general of
the FLA, said: “Asset finance tailored to [SME businesses’] cash
flow needs is a growing part of investment funding for such
companies, and will be an important factor in helping the economy
emerge from recession.”
Small firms in London have been hit the hardest by the economic
downturn, according to the survey of just under 1,300 SMEs across
the UK.
71 percent of small firms in London said they had suffered
falling or stagnant sales in the fourth quarter of 2008; and nearly
a quarter (23 percent) said this has led them to reduce
headcount.
“The challenges for London SMEs need to be taken seriously.
Small businesses across the capital are facing tough credit
conditions and finding it difficult to get their bills paid on
time,” he added.
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