The Government’s British Business Bank (BBB) has published its first comprehensive analysis of the state of the UK’s small business finance market.
The report, “Small Business Finance Markets 2014“, includes a separate chapter on asset finance (2.4, pages 36-42), recognising its importance for small businesses.
Mark Picken discusses the importance of asset finance in the SME market
Regarded by the British Business Bank as one of the industry’s leading experts, Shire Leasing’s managing director, Mark Picken, was asked to contribute to the report, discussing the state of equipment leasing and asset finance in the small to medium business marketplace, specifically how many SMEs don’t realise how asset finance can benefit them.
“Many SMEs don’t realise that asset finance is available to them and that it can play a crucial role in their business growth”, says Mark. “It should be used more widely, as it provides a solution to the systematic banking problems that continue to hamper development in this sector.”
Report highlights
Along with Mark Picken’s contribution, which can be found on page 42, the report also highlights:
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the shift from working capital to funding fixed assets over the last couple of years
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the significant contribution of the asset finance industry to small business lending of more than £13bn
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the important of asset finance in small business finance markets in the future
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the importance of asset finance in the investment recovery story, because it can affect a firm’s propensity to invest
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the awareness of leasing and hire purchase solutions versus awareness of specific suppliers
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the need to increase knowledge of using asset finance more widely, and where businesses can get it
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leasing as a solution in the small business lending markets because the assets financed act as security
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a 91% application success rate in the twelve months to June 2014
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the BBB’s recognition of the importance of asset finance to small businesses
