Finance for new vehicles is up by a third, says FLA
Page 43
If you've noticed an error in this article please click here to report it so we can fix it.
Words: Kevin Swallow BORROWING BY operators looking to inance new trucks and vans rose by 32% during the irst quarter of 2011 compared with last year, according to the Finance & Leasing Association (FLA).
More than £1bn was lent by inancial institutions for more than 20,000 trucks and vans. Julian Rose, FLA head of asset inance, says: “Many of the small businesses that provide the services that keep our homes and ofices going are replacing their old vehicles with more suitable and more environmentally friendly models. “Our evidence shows that small businesses such as plumbers, builders and delivery companies are turning to asset inance rather than paying upfront.” Loan agreements taken out by operators during March 2011 rose 23% to £457m, compared with March 2010, and the rolling 12-month igure stands at more than £3.7bn, which is up 10%.
Rose says CV inance is leading the recovery, as smalland medium-sized businesses seek alterna tive forms of inancing and changing the way they ind inance. Lending provided through commercial inance brokers is up by 19% in the last 12 months, its highest yearly total since June 2009.
Finance arranged by equipment dealers and distributors is also up, this time by 24% in Q1 2011 to £1.2bn.
“More and more businesses are making use of the wide choice of available asset inance.
“Finance direct from a bank or inance house is still the most popular, but inance from an equipment dealer or distributor, or through a commercial inance broker, is increasing in popularity,” Rose adds.