FLA welcomes new Business Bank scheme to support asset finance

Commenting on the Chancellor’s confirmation in the Autumn Statement that the British Business Bank will launch an innovative new scheme to support the provision of leasing and asset finance, Julian Rose, Head of Asset Finance at the Finance & Leasing Association (FLA), said: “Our industry already supports new investment by a thousand firms each day, but some of the fastest-growing still need more help to invest in equipment.

“If successful, the new scheme could enable specialist non-bank asset finance companies in particular to support more investment and jobs.“ The Chancellor’s announcement coincides with new research by the Open University Business School which found that the majority of small businesses did not yet have the necessary equipment and technology needed to thrive over the next three years.

“The FLA’s own statistics shows growth in asset finance new business, and our confidence survey of the industry suggests this is likely to continue, so the new scheme is indeed timely and welcome.”

Note to editors:

1. Details of the new scheme can be found in paragraph 1.169 of the Autumn Statement https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/263575/Autumn_Statement_2013.pdf
2. The small business research from the Open University was supported by the FLA. The results mentioned in the press release are provisional findings http://www.open.ac.uk/blogs/richardblundel/  and the full report is due in January 2014.
3. The FLA quarterly asset finance confidence survey aims to gauge senior executives’ opinions about the outlook for the UK economy and the asset finance industry. All FLA asset finance senior executives were invited to take part and the main finding suggests that the industry is cautiously optimistic about economic prospects and market conditions over the next year, with a majority expecting growth of up to 10% in each of the main channels for new business.
4. In 2012, FLA members provided £80.2 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.