Asset Finance recognised as a key choice for firms seeking to reduce carbon emissions

Commenting on the Small Business Finance Markets 2021/22 report, published today by the British Business Bank, the Finance & Leasing Association welcomes the recognition that asset finance will be a key choice for businesses seeking to reduce their carbon emissions.

The report also notes that several asset finance providers have already launched products designed to increase the usage of electric vehicles, and it further highlights cases where our members are partnering with local authorities to support green initiatives – for instance Shire Leasing and Haydock Finance being appointed financiers on Greater Manchester’s Clean Air Financial Support Scheme.

Examples such as this illustrate not only the innovative approach of this industry, but also its commitment to Net Zero more broadly.

Commenting, Stephen Haddrill, Director General of the FLA said:

“The report notes that almost half of smaller businesses see reducing their carbon emissions as a priority, and over a fifth would use external finance to improve their environmental impact. With the strong growth in business investment forecast for 2022, we would like to see more firms choosing asset finance.

“The report also makes clear that Ethnic Minority and female-led businesses are missing out on funding. This is an important point and one we will work with members to solve, as getting finance to this under-served cohort would be transformative for their businesses.”

 Notes to editors

1.In 2021, FLA members provided £132 billion of new finance to UK businesses and households. £101 billion of this was in the form of consumer credit representing over a third of total new consumer credit written in the UK in 2021. £31 billion of finance was provided to businesses and the public sector. FLA members financed more than a third of UK investment in machinery, equipment and purchased software in the UK in 2021.

2.Follow the links for the FLA’s Green Manifesto and information on the Independent Liquidity Funding (ILF) Scheme

3.For media enquiries, please contact the FLA press office on 020 7420 9656.