According to the Governments SME Business Barometer, vehicle leasing for small and medium businesses has increased during 2013, the BVRLA has reported. Over 1/3 of the businesses surveyed by the Government revealed that credit applications made in the last six months were done so in relation to the acquisition of vehicles and/or equipment. In particular, there has been a huge increase in the demand for car leasing and van leasing finance products, bringing statistics in-line with figures from 2009. On a positive note, 80% of the businesses surveyed were able to secure the credit requested.
While the UK economy has some way to go before any sort of rapturous applauses, it is very pleasing to see the increasing confidence amongst small and medium businesses who are now re-investing into vehicles and equipment to grow businesses. As some of the vehicles will also be more of a luxury purchase than an “essential” buy as such, it does show a more positive attitude to spending.
Part of the increase in vehicle leasing for small businesses will also be down to the growth in product knowledge, as more and more people are made aware of this method of funding. For a business needing fixed monthly costs, maintenance to be included, tax efficiencies and no disposal costs, it presents an interesting product to consider, as opposed to the typical large cash purchase.
From our perspective at CarLease UK, we do hope more small businesses continue to use our services as confidence continues to grow!