SMEs migrate to asset finance for commercial vehicle purchases
According to the latest FLA statistics, more than £1 billion was provided by finance companies for the leasing or hire purchase of around 20,000 new vans, trucks and lorries in Q1 2011.
It adds that smaller businesses are also changing the way they finance vehicles. Finance provided through commercial finance brokers is up by 19% in the last 12 months to £3bn – its highest yearly total since June 2009. And finance arranged by equipment dealers and distributors is enjoying a similar increase – up by 24% in Q1 2011 to £1.2 billion.
Commenting on the figures, Julian Rose, head of asset finance at the FLA, said: 'More and more businesses are making use of the wide choice of available asset finance. Finance direct from a bank or finance house is still the most popular, but finance from an equipment dealer or distributor, or through a commercial finance broker, is increasing in popularity.'