Growth in all business equipment finance sectors in February is a sign that businesses are gaining the confidence to invest.
New figures from the Finance & Leasing Association (FLA) show that commercial vehicle finance, IT equipment and plant and machinery finance all grew by more than 20 percent when compared with February 2011. Car finance and business equipment finance grew by 2 percent and 5 percent respectively, compared to 2011.
The figures reflect an upward trend in the use of asset finance. In the last 12 months, asset finance provided £21.2 billion for businesses investing in equipment and in 2011 asset finance helped fund 27 percent of all fixed-capital investment in the UK.
Geraldine Kilkelly, Chief Economist and Head of Research at the FLA, says the figures show that with businesses turning to asset finance to fund investment in new and replacement business equipment. Plant and machinery, IT equipment and commercial vehicles were especially strong, which is a good sign for the economy:
“For some businesses asset finance helps them to replace ageing equipment, while for others it helps them to expand and grow. Whatever the reasons, asset finance plays an important role in funding business investment and in contributing to the economic recovery.”