South Yorkshire businesses 'growing in confidence'
19 May 2011
A South Yorkshire business finance expert says businesses seem to be growing in confidence with an increase in borrowing.
Barnsley-based asset finance broker Jason Lincoln, says he brokered 23 per cent more deals in the first four months of this year compared with last year. That translates into £850,000 worth of deals – up 25 per cent in monetary terms on 2010.
Asset finance is where manufacturing plant, cars, vans and other equipment are procured by leasing or hire purchase, thus allowing businesses to avoid paying for equipment upfront.
The increased borrowing has been across the board, said Jason, but he has particularly noticed several large clients finally replacing fleet vehicles – something which had been on hold for about 18 months.
“In some cases the borrowing is because businesses can’t put off replacing plant and equipment any longer,” said Jason, director of Lincoln Finance.
“But there does seem to be a feeling of growing confidence among small and medium-sized businesses. There is also the realisation that interest rates may not stay as low as they are for much longer, so now is the time to borrow.
“I am cautiously optimistic that we may have turned a corner. This increased borrowing indicates businesses are investing in new equipment, which in turn will inject new life in to the economy."
“It also shows how important the role of brokers is in the growth and recovery of the UK as a whole.”
And the figures are reflected nationally, with the Finance and Leasing Association, the trade body for the asset finance industry, seeing a similar increase across the UK, with just under £3bn borrowed through brokers in the year to the end of February, compared with £2.5bn the year before.
Julian Rose, head of asset finance at the Finance and Leasing Association, said: “Commercial vehicles, plant and machinery, and business equipment have led the charge, showing the most growth. Brokers have a role to play in helping small businesses to find the best deals available across the market."
Lincoln Finance is an independent asset finance brokerage, which has arranged finance deals worth more than £19.5m since 2005. Its website is at www.lincolnfinance.co.uk
NOTE TO NEWS EDITORS
Jason Lincoln, director of Lincoln Finance, which is based in Crane Moor, can be contacted at email@example.com
or on 0114 2830805/ 07717 858888.