Key summary:
- Asset finance increased by 25% to £1.7 billion in May over 2010 figures
- 1,000 small businesses take out equipment finance every day
- For 80% of firms, capital allowance had no impact on investment decisions
A report by the Finance & Leasing Association (FLA) has revealed that asset finance lending had increased to £1.7 billion, up by 25 per cent in May, compared with 2010. It was estimated that 1,000 small businesses had taken out equipment finance every day.
Mark Johnson, Managing Director of Johnson Reed, said:
It’s great news that more and more SME businesses are seeing the advantages of assent 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.
Glazing and Window Equipment Leasing has become very popular lately, allowing small businesses to rent the equipment and write it off 100 per cent against their tax.
Whilst it’s been a very difficult time for the financial sector we are now seeing month on month growth. The team at Johnson Reed will always explain the tax benefits to our clients, that can be considerable amounts but are often over looked. I also feel this proves the UK SME market is defiant and will continue to expand. If you have any questions regarding Asset finance or would like a better understand of what tax you could save by using leasing please don’t hesitate to contact us…”
