Asset Finance

Welcome to the asset finance pages. 

The FLA is the leading trade association for the asset finance sector in the UK.

In 2011, FLA members contributed funding worth £20.8 billion to the business sector and public services, representing about 25% of all fixed capital investment in the UK.

An analysis of 2011's asset finance statistics, including new business by sector and channel, as well as a look at the last five years of asset finance business, can be downloaded here:

What is asset finance?

Asset finance is a loan that is used to obtain equipment.

Whenever organisations invest in tangible assets - anything from office equipment to manufacturing plants, from cars to a fleet of aircraft - they usually need an affordable, secure means of finance.

That’s exactly what the asset finance sector is all about. In fact, Asset Finance is the third most common source of finance for businesses, after bank overdrafts and loans. It is also of growing importance in the public sector.

Why use asset finance?

Asset finance is a flexible alternative to a traditional bank loan, providing significant cash flow and tax benefits for businesses looking to purchase a new piece of equipment, a vehicle or other fixed assets.

Click the picture for an interactive version:

Who uses asset finance?

Asset finance accounts for the majority of debt-financed business investment.

Around one in three small businesses that have any external borrowing use asset finance. Amongst these, the use of asset finance is particularly high in Wales (54%), the North East (46%) and the North West (42%) with agricultural and manufacturing making most use of leased equipment.

Advantages to business

Asset finance is:

• A valuable alternative to conventional bank loans
• Secured wholly or largely on the asset being financed, reducing the requirement for additional collateral
• Secure for the user, as the finance cannot be recalled during the life of the agreement
• Sustainable because businesses have the option to replace or update equipment at the end of the lease period.
• Widely available through a network of around 5,000 equipment dealers and 400 brokers, as well as direct from finance companies.

Sources of Asset Finance