Asset Finance
Welcome to the asset finance pages.
The FLA is the leading trade association for the asset finance sector in the UK.
In 2010, FLA members contributed funding worth £19.6 billion to the business sector and public services, representing about 25% of all fixed capital investment in the UK.
What is Asset Finance?
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. Asset Finance:
- Funds around 25% of all fixed capital investment, other than property and own-account software in the UK.
- Provides finance to around 20% of all SMEs, and to around 33% of SMEs that seek external funding
- Is particularly important in the manufacturing, agriculture and transport sectors, and in the North East, North West and South West.
- The two main forms of Asset Finance are Leasing and Hire Purchase
Under a leasing agreement, the leasing company or lessors buys and owns the asset. The customer, or lessee, then hires the asset, paying rental over a fixed period. At the end of the contract, the customer usually has a choice of extending the lease, buying the asset or simply returning it.
Hire Purchase is a financing solution for companies wishing to purchase business assets. The customer pays an initial deposit, with the remainder of the balance and interest paid over a period of time. On completion, ownership of the asset transfers to the customer.
Sources of Asset Finance
Asset finance can be obtained direct from specialist providers, or indirectly through equipment suppliers or finance brokers.
Most companies providing direct Asset Finance in the UK are members of the FLA. Choosing an FLA member for Asset Finance is your reassurance that funding will be provided under the stringent business standards set out in the FLA's Business Code of Conduct.
Recent news
Finance House Base Rate (FHBR) is 1.5% for February 2012-
27 Jan 2012
The FHBR will be 1.5% for February 2012, which represents no change compared with January 2012. 
Leasing grows in popularity for business investment-
13 Jan 2012
New figures from the Finance & Leasing Association (FLA) show that the popularity of business finance as a means of financing investment in new business equipment has grown significantly. 
Asset finance to boost Chancellor's small business investment plans-
29 Nov 2011
The Finance & Leasing Association (FLA) has responded positively to the Government's announcement that it is exploring alternative finance options to help small business investment.
