The asset finance market is showing strong growth, and this is excellent news for small and medium-sized enterprises (SMEs) across the UK. Recent data indicates that asset finance increased by 25% to £1.7 billion in May compared to 2010 figures. In addition, it is estimated that 1,000 small businesses take out equipment finance every day. A key highlight is the rise of Glazing Finance, which has its benefits for SMEs. Glazing Finance allows businesses in the glazing and window sectors to access modern equipment with flexible leasing options, offering cost-effective solutions and enhanced cash flow management. For 80% of firms, capital allowance had no impact on investment decisions, underlining the importance of these flexible funding options in today’s competitive market.
Asset Finance Market
The latest report by the Finance & Leasing Association (FLA) has highlighted a significant increase in asset finance lending. The data shows that by May, the total lending reached £1.7 billion, representing a 25% rise from the 2010 figures. This growth demonstrates the rising demand for asset finance and equipment leasing as companies seek better ways to manage their cash flow and invest in modern, efficient equipment.
Why Asset Finance is Essential for SMEs
For many SMEs, obtaining the right funding is a critical factor in business expansion and maintaining competitiveness. Traditional loans often come with lengthy approval processes and rigid terms, making them less appealing to small businesses that need to act quickly. Asset finance offers a more flexible and agile solution that helps companies access the necessary equipment and technology without straining their working capital.
- Flexible Leasing Options: Asset finance provides an opportunity to lease equipment rather than buying it outright. This means companies can upgrade to modern equipment and maintain financial stability with fixed monthly repayments.
- Tax Benefits: Although 80% of firms found that capital allowance did not affect their investment decisions, many businesses can still benefit from tax incentives when opting for equipment leasing. These benefits can reduce the overall cost of ownership and improve cash flow management.
- Glazing Finance Advantages: For businesses in the glazing sector, Glazing Finance offers targeted benefits such as improved access to specialised equipment and the ability to write off the leased assets against tax. This makes upgrading facilities more affordable and efficient.
Insights from the Industry
Mark Johnson, Managing Director of Johnson Reed, has shared his thoughts on the current trends in asset finance and equipment leasing:
“It’s great news that more and more SME businesses are seeing the advantages of asset finance lending. It’s making it more feasible for them to move forward with their business plans, whether this is expanding their current businesses, purchasing more modern, efficient equipment, or simply upgrading the facilities they have.”
The Rise of Glazing and Window Equipment Leasing
A particularly interesting trend is the growing popularity of Glazing and Window Equipment Leasing. This niche area has become very popular, as it allows small businesses to rent the equipment they need and write it off 100% against their tax. This innovative approach is a perfect example of how leasing can be adapted to suit specific industry requirements, providing SMEs with the opportunity to remain competitive and up to date without a significant upfront investment.
Overcoming Financial Challenges
Despite the difficult times faced by the financial sector, the consistent month-on-month growth in asset finance is encouraging. It signals that the UK SME market is resilient and continues to seek flexible financing solutions even in challenging economic climates. The ability to access funds quickly and efficiently through asset finance is proving to be a key factor in driving business expansion and technological upgrades.
How Johnson Reed Can Help Your Business
At Johnson Reed, we specialise in providing tailored asset finance and equipment leasing solutions for SMEs. Our team is dedicated to helping you understand the various tax benefits and cost-saving opportunities available through leasing. We believe that every business deserves a straightforward, client-focused approach that simplifies the financing process.
A Personal Approach to Equipment Leasing
When you work with Johnson Reed, you benefit from a dedicated industry specialist who understands your specific needs—whether you are in catering, IT, retail, or a specialised sector such as glazing. Our personal service means you receive tailored advice and support every step of the way. We focus on building long-term relationships with our clients, ensuring you are well informed about how capital allowances and tax incentives can work in your favour.
Comprehensive Leasing Solutions
Our leasing solutions are not just about acquiring new equipment—they are designed to support your entire business growth strategy. With our comprehensive packages, you can:
- Upgrade or Extend Equipment: Stay ahead by continually modernising your equipment, ensuring that you benefit from the latest technology trends.
- Simplify Financial Planning: With clear and fixed monthly repayments, you can manage your budget efficiently while enjoying the benefits of improved cash flow management.
- Maximise Tax Benefits: We ensure that you understand the significant tax advantages available through leasing, including those in Glazing Finance, which can lead to substantial savings over time.
For further guidance on financing options for SMEs, you might also visit the official Gov.uk Business Finance Support page for additional insights and support.
Get in Touch With Us
If you have any questions about asset finance or would like to better understand how much tax you could save by using leasing, please do not hesitate to contact us. At Johnson Reed, we are committed to helping your business thrive with flexible and client-focused financing solutions. To learn more, visit our website or call our team directly.
Our team is here to support you every step of the way, ensuring that you make informed decisions that propel your business forward. By choosing asset finance and equipment leasing with Johnson Reed, you are not only accessing modern equipment but also ensuring your business remains agile, competitive, and ready for the future.
