From haulage companies looking to expand their fleet of vehicles to construction firms in need of a specialised piece of equipment, small to medium-sized businesses (SMEs) are increasingly turning to different finance options.
This is seen in the growth of asset finance, which is both tailored and flexible to businesses’ needs. More and more companies are using asset finance to fund the purchase of vehicles and vital pieces of equipment needed for expansion of their firm, according to the UK’s largest asset finance provider, Lombard.
Recent statistics support Lombard’s claims, with figures by the Finance and Leasing Association showing a 5% growth in asset finance provided by its members in 2017 – up to £32billion.
SMEs, it appears, are one of the driving forces behind the demand, with the report revealing that £18.6bn had been lent to small to medium-sized businesses. And with over 150 years of experience under its belt, Lombard is keen to raise awareness of asset finance as a viable lending option for SMEs across a wide range of sectors, including IT, energy and renewables, manufacturing, marine, agriculture and construction.
The finance company, which has won the Business Moneyfacts award for Best UK Leasing Asset Finance Provider* for 10 consecutive years, is championing the many benefits of asset finance for companies in need of additional finance – and its managing director, Ian Isaac, says it isn’t just about the immediate need to replace older equipment.
“Asset finance could be a good alternative option for many SMEs that need to invest in equipment to support growth plans without
disturbing cash flow,” explains Ian.
“The nature of the finance, with funders taking security in the asset, means that businesses could protect existing credit lines and potentially free up additional cash through a sale and leaseback of existing assets.
“SMEs are also attracted to the ease of applications and swift turnaround of transactions involved in asset finance, which are a world away from the often cumbersome mechanisms of the more traditional lending options available.”
Its versatility means that asset finance is increasingly being sought across almost all sectors, and Lombard’s highly specialised experts have collective expertise in supporting businesses in most industries.
According to Ian : “The depth of knowledge they have of individual sectors allows them to adopt a
holistic approach when discussing finance packages with clients, taking into account changes and trends within the individual industry that could have an impact on the client’s business.”
With the short-term future of the economy continuing to look unsettled, it’s expected that more and more SMEs looking to invest in their business will come to see asset finance as an alternative form of borrowing. By seeking the expertise of an asset finance specialist, businesses can be confident they’re choosing the right option for them.
*Business Moneyfacts Award 2009-2018, Best Leasing and Asset Finance Provider
- To find out how Lombard could help your business, visit lombard.co.uk , or speak to the Lombard team on 0800 151 2956. Security may be required. Product fees may apply
Waste not, want not
A professional demolition job is a carefully orchestrated process. And while to the untrained eye the output may just look like a pile of rubble, it contains materials of real value – including metals, wood, glass and brick.
Removing and recycling these elements is a growing industry and helps to reduce the environmental impact of demolition.
Based in Bonnybridge Central Demolition Ltd provides an end-to-end service in this field. The business has been trading for over 25 years and in that time has expanded to include asset recovery, asbestos removal and recycling.
Asset finance provider Lombard has long been an active supporter of the company’s ambitions for growth and diversification, most recently arranging a credit line of £1m. To date, this has been drawn upon for a £650,000 investment across five different items of Volvo construction equipment.
Lombard also provides a credit line for Central Demolitions’ subsidiary, Central Recycling Ltd.
In 2017, the funding facility enabled this arm of the business to acquire a Powerscreen Warrior, a huge machine that screens and separates waste materials.
Managing director Ross Craig says: "Having access to asset finance gives us the flexibility to invest in plant and equipment, which means we can be very responsive to customers."
