Asset finance for SMEs

By Jonathan Smith, managing director, Kingsley Asset Finance.

SMEs in Lancashire have voiced their concerns that high street banks do not always offer the support and bespoke asset finance advice needed for their business.

Kingsley Asset Finance’s research shows that many SMEs are unaware that there are other finance options available, resulting in them turning to high street banks when looking for asset finance. It is well reported that many high street banks reject their asset funding requirements which can, in turn, stifle their company growth.

Concerns are that some SMEs, having experienced rejection, may go on to access finance solutions which are unsuitable for their business with real risks, for example personal credit cards with high interest rates or bank overdrafts which can be withdrawn.

Many of our SME customers have experienced rejection from their bank when applying for asset finance. We understand that every business is different, and our team has the relevant specialist knowledge and experience and are able to explain the options available.

New figures released by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 5 per cent in 2017 – the seventh consecutive year of growth. Asset finance is a vital source of funding for SMEs when investing in business vehicles, plant and machinery.

With the demand for asset finance funding predicted to continue to increase this year, asset finance specialist lenders will be called upon further to assist the SME market.

I’m very pleased to report that we achieved our new business sales targets in 2017.  We funded over 400 SMEs and lent over £10m on our own book, delivering another record breaking year for lending. Despite the challenges presented by Brexit uncertainty and a downgrading of UK economic growth, we maintain an  optimistic outlook and we have developed our team, recruiting three experienced asset finance specialists with a view to increasing our business volumes.

KAFL expects to see further growth in the funding and refinancing of new and used plant, machinery and vehicles in a wide section of industry sectors this year, particularly in construction and waste management.

Over the years we have gained considerable knowledge and experience of plant, machinery and vehicles employed in many industries. We offer SMEs versatility and flexibility, with HP, leasing and refinance and unsecure commercial loans. Transactions are completed quickly and efficiently. In our view, dealing with a professional asset finance specialist is more simplistic than asking for a business loan from a high street bank or applying to increase the company overdraft.