Following 5% growth in core asset finance new business during January 2013, the latest asset finance confidence survey shows that new business is expected to increase by more than 10% in the direct finance channel during the next twelve months.
The survey from the Finance and Leasing Association (FLA), carried out during Q1 of 2013, is based on responses from 33 member companies which account for 73% of new business written in 2012.
It also suggests that the vast majority (96%) expect to see an increase in lending to small and medium sized enterprises.
Julian Rose, head of asset finance at the FLA, said: “The Government’s Business Bank – more details of which are expected to be announced by the Chancellor this week – is focused on getting finance to growing small businesses.
“This survey confirms that the asset finance market is a well-established means of providing what these businesses need.
“It will make sense for the Business Bank to build on that by working through bank and non-bank asset finance companies.”