Do Enough Businesses Realise The Benefits Of Asset Finance?
Only one in 10 business owners (11%) describe the strength of their companies’ working capital facilities as “very strong”, even though their businesses are performing well, a report has revealed.
A survey found that a further 29% claimed it was “quite strong”, nearly half (45%) described it as “average”, while 12% declared it was “weak”.
Despite these findings, just 29% of respondents said that their firm had used asset finance to improve the management of cash flow.
Meanwhile, 26% said they were planning on using asset finance over the next 12 months.
The research found that of those businesses which had used asset finance in the last five years, the primary reason for doing so (cited by 20%) was to purchase a new plant or equipment while protecting cash flow.
Other reasons included that it was used as the firm was unable to extend its overdraft facilities (15%) and enabled the business to raise funds and allowed the company to release much-needed capital against unencumbered assets (13%).
One in 10 respondents (10%) said they had been refused a formal loan from their bank or building society.
We believe that too many UK businesses are not realising the significant benefits that asset finance can bring them. Many may not be aware of asset finance and the options and types of products that are available to them.
Azule Finance provides a dedicated and comprehensive range of asset finance products specialising around the media and production industries.