SMEs feel the force of finance decline
New figures released by the Finance & Leasing Association (FLA) show that total asset finance new business fell by 18% in August 2020 compared with the same month in 2019.
In the first eight months of 2020, new business decreased by 30% compared with the same period in 2019.
Geraldine Kilkelly, head of research and chief at the FLA, said: “In August, the asset finance market continued to report lower levels of new business year-on-year. There were pockets of growth reported by the IT equipment finance and manufacturing equipment finance sectors.
“The asset finance industry has a long tradition of supporting smaller businesses fund capital investment, with 60% of annual new business provided to SMEs. To ensure these customers can continue to obtain the finance they need to innovate and grow, we urge the government and Bank of England to support all lenders, including non-banks, by removing the obstacles that still exist around access to funding.”
