The latest figures released by the Finance & Leasing Association (FLA) show that in Q3 2018 asset finance new business grew by 6% compared with the same quarter in 2017. This is encouraging news and a positive sign of growth despite the uncertainty surrounding the ongoing Brexit negotiations.
The high liquidity in the asset finance market has driven increased competition which has fuelled the growth of this sector. As a result, the industry has changed for the better, with brokers, companies and consumers having access to an increased number of finance providers. According to Geraldine Kilkelly, Head of Research and Chief Economist at the FLA “the market is on track to report new business growth of around 5% in 2018 as a whole, reaching a record annual total of £33 billion.”
Following this trend, last month, as part of the national UK Autumn Budget, Chancellor Philip Hammond announced that the Annual Investment Allowance (AIA) for plant and machinery will be increased to a maximum of £1m from £200,000. This raises the tax deductible for businesses that invest in assets for production and has the potential to drive demand for hire purchase facilities on equipment. This is a good example of the Government working to ensure SMEs are the focus of future economic growth in the UK and it is encouraging to see the Chancellor using the strength of the Treasury to support SMEs. We anticipate that this will inspire UK SMEs to invest despite the challenging political and economic landscape they face.
Brokers play a vital role in enabling the nation’s SMEs to make the most of the opportunities available by helping them access the financing they need to grow their business. At HTB, we are investing in technology to streamline our processes and procedures, while investing in our people to ensure a level of expertise and specialist market knowledge is maintained. Our teams are dedicated to delivering simplified processes, this year we introduced our web portal which is an example of our commitment to delivering for our broker partners and providing the best service possible. By working together, we can continue to help fuel this growth and ensure the future success of the UK economy.
To find out more about HTB’s Specialist Business Finance division click here.