New figures released by the Finance & Leasing Association (FLA) show that 28.7% of UK fixed capital investment was financed by FLA members in 2012, the highest level recorded since 2008.
The latest figures for February 2013 show that new business provided through leasing and hire purchase contracts fell by 2% compared with the same month in 2012, but new business in 2013 overall is expected to grow by up to 10%.
Commenting on the figures, Julian Rose, head of Asset Finance at the Finance & Leasing Association (FLA), said: “We welcome the Government’s announcement of an Investment Programme to support SMEs, including through asset finance.
“The figures show an increasing appetite on the part of businesses to fund growth through leasing.
“However, the Business Bank’s new programme must be properly coordinated with the Bank of England’s Funding for Lending Scheme to ensure that Government interventions work through all parts of the finance markets.”