Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Business

BULLISH SMEs INVESTING IN WORKING ASSETS 

BULLISH SMEs INVESTING IN WORKING ASSETS
  • SMEs most likely to invest in IT equipment, cars, vans and plant & machinery over the next 12 months
  • 53% expect demand for alternative finance – including asset finance – to increase over the next two years

A new survey1 commissioned by Norton Folgate, the City-based asset finance and leasing specialist, reveals that four in ten (39%) SMEs plan to invest in new IT equipment over the next 12 months, spending an average of £5,290 each.

Cars are the second most popular working asset among SMEs, with nearly a fifth (18%) of business owners planning to acquire at least one over the next year, spending on average £14,496.

Plant & machinery (12%) and commercial vehicles (11%) are in third and fourth places with SMEs spending an average of £7,426 and £11,163 on these respectively.

According to the findings, 10% of SMEs intend to use asset finance and alternative finance to acquire their working assets, underlining the growing popularity of this sector.  Indeed, more than half (53%) expect demand for alternative finance – including asset finance – to increase over the next two years.

Norton Folgate, which provides asset financing for the acquisition and refinancing of all working assets including IT and soft assets, cars and other vehicles, is seeing a significant increase in the number of enquiries among SMEs.

Robert Keep, Founder and Principal of Norton Folgate, said: “Most SMEs understand the critical importance of up to date IT systems and this is reflected in their willingness to invest in new equipment over the next 12 months.

“We’re finding that many small business owners increasingly see the value of using asset finance to acquire these rather than tying up working capital or turning to bank overdrafts and expensive credit cards.  By offering a flexible and responsive service and highly competitive rates we have seen our lending book grow significantly.  Being part of Amicus has put us in a very strong position to further enhance our asset leasing and finance capabilities.”

John Jenkins, CEO of Amicus commented: “It’s encouraging to see such significant numbers of SMEs are committed to investing in their working assets and the growing importance of asset finance.  Norton Folgate has built a very strong reputation in this field and is playing an integral role in our strategy of offering a diversified range of specialist lending services.”

Within the next 12 months, do you plan to invest in any of the following? Percentage of respondents (%) Average amount intended to spend (£)
IT equipment 39% £5,290
Cars 18% £14,496
Telecoms equipment 13% £5,368
Plant and machinery 12% £7,426
Commercial vehicles 11% £11,163
None of the above 39%

Source: Norton Folgate (May 2016)

Amicus Finance acquired Norton Folgate in February 2015 for an undisclosed fee and has since committed significant working capital and resources. The company led by Robert Keep is a leading and sustainable provider in SME asset finance and leasing, HNWI financing and SME business loans.

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post