Equipment Leasing Boom – New Business up by 53%

Recently released figures the Finance & Leasing Association (FLA) show 31% growth in asset finance new business during September 2014. New business has now reached over £2.5 billion, the highest monthly figure in almost six years. FLA members financed almost 27% of UK investment in machinery, equipment and purchased software in the UK last year.

Leading the charge is business equipment finance, reporting its strongest growth so far this year, with new business up 53% in September compared with the same month in the previous year. Plant and machinery finance, commercial vehicle finance and IT equipment finance were up by 22%, 16% and 15% respectively.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:

“September saw robust growth across all the key asset finance sectors. New business in the third quarter of this year increased by 21%, three times the rate of growth recorded in the second quarter. These figures clearly show that the asset finance industry, through the provision of leasing and hire purchase, is helping UK businesses to invest and grow.”

The Federation of Small Businesses (FSB) has previously reported that two thirds of small firms expect to grow in the next 12 months and one in four plans to increase the amount of investment in their business. As a leading UK leasing company and FLA member, WestWon is helping organisations of all sizes to achieve their growth plans through the best equipment lease deals for their needs:

Key Reasons Why Equipment Leasing Is Growing:

• Leasing Improves Cash Flow – By making monthly payments over the duration of a lease finance agreement, you can spread the cost over the useful life of your equipment, rather than having to find the capital up front.
• Leasing Tax Advantages – Regular monthly payments can qualify as a tax deductible trading expense making the acquisition of essential assets more cost-effective.
• Easier to Upgrade Business Equipment – Technology changes rapidly and avoiding obsolescence is key to staying ahead. With leasing you can enhance or upgrade your equipment as the need arises.
• Leasing Increases Available Budget – Instead of spending lump sums on rapidly depreciating assets, you can allocate resources to where they’re needed most – giving you the freedom to invest in other areas of your business.
• Business Equipment Leasing is Flexible – Lease finance agreements can be tailored to suit your particular business requirements and include whatever combination of business equipment and related services you require.
• Leasing Protects Existing Lines of Credit – Our financing solutions have no effect on your other borrowing options, ensuring you can stay financially flexible.

For more information about business equipment leasing options download the Free Guide To Equipment Leasing or contact WestWon on Tel: 01494 611 456