Investment by British businesses using asset
finance is seeing the first signs of an upturn, according to
figures published by the Finance & Leasing Association
(FLA).
The figures show that leasing and hire
purchase provided to UK businesses for new equipment investment
rose by 11% in March 2010, compared to 2009.
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A total of £1.7 billion (€1.97 billion) of
asset finance was provided, compared to £1.5 billion in March last
year, to fund equipment such as manufacturing plant, computers and
company vans/
It was the first month of year-on-year growth
since September 2008.
The FLA called the figures “cause for cautious
optimism”, but added new asset finance business remains
“significantly lower” than pre-recession levels.
According to the body, some businesses are
continuing to make do with old equipment, and are “unprepared to
meet market demand as the economy recovers”.
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By GlobalDataJulian Rose, head of asset finance at the FLA,
also called on the government to give small businesses using asset
finance the same tax incentives as those buying outright.
Claire Hack
