29 August 2013
Today’s BDRC Finance Report, which highlights that business sentiment is at its most positive since the survey’s inception, echoes findings from the Finance & Leasing Association’s (FLA) recent Asset Finance Confidence Survey. 81% of FLA respondents expect an improvement in economic prospects in the short term, the most optimistic outlook since the survey began in 2011.
The FLA regularly polls the senior executives of member firms in the asset finance sector to gauge their opinion about market conditions. Thirty one companies, which accounted for 77% of the new business written in 2012, responded to the latest survey. Over the next 12 months 95% of FLA members lending in this sector expected to see an increase in business, and more than two thirds expected an increase in lending to corporates over the next twelve months. The BDRC Finance report also found that 51% of small or medium sized firms (SMEs) aimed to grow their business in the next 12 months.
The Confidence Survey from the FLA showed that members expect new business to increase by up to 10% over the next year. The BDRC Finance report also concluded that a sure sign of economic recovery was the 6% to 9% climb in the proportion of firms using leasing and hiring.
Commenting, Geraldine Kilkelly, Chief Economist at the FLA, said: “We have two key surveys reporting exactly the same sense of optimism in the asset finance market, a market which supports businesses of all sizes and across manufacturing, service and public sectors.
“Asset finance works for businesses. The interest rate is low and the agreement is secured on the asset being financed. It’s the perfect solution for those firms which are sensing business opportunities.”
Notes to Editors
- Extracts of the FLA’s Asset Finance Confidence Survey can be found .
- The Q3 2013 results are based on responses from 31 member companies, who accounted for 77% of new business written in 2012.
- In 2012 FLA members provided £76.6 billion of new finance to UK businesses and households. £21.5 billion of finance was provided to businesses and the public sector, representing around 28% of all fixed capital investment (excluding real property and own-account software) in the UK last year