May 24th 2010

Figures published today show the first sign of an upturn in investment by British businesses using asset finance. The Finance & Leasing Association’s (FLA) latest figures show that asset finance (leasing and hire purchase) provided to UK businesses for investment in new equipment increased by 11% in March this year compared with the previous year, the first month of year-on-year growth since September 2008.

£1.7 billion of asset finance was provided for new equipment in March this year, compared to £1.5 billion in March 2009. It will fund new manufacturing plant, computers, company vans and other types of business equipment.

While these figures are cause for cautious optimism, new asset finance business remains significantly lower than pre-recession levels. The lack of investment during the recession has led to ‘Rusting Britain’, as businesses make do with old and energy-inefficient equipment, and are unprepared to meet market demand as the economy recovers. Research has found that the fall in business investment in the most recent recession was greater and more rapid than in the recessions of 1980 and 1990.

Commenting on the statistics Julian Rose, Head of Asset Finance at the FLA, said:

“These figures suggest that Britain’s businesses are beginning to increase their investment in new equipment. Many use leasing because it helps them to manage their cashflow and to obtain the business equipment they need, when they need it, and at reasonable cost. But the new Government needs to help by giving small businesses that lease equipment the same tax incentives as those that can afford to buy outright.”
 
Taken from the FLA website:

http://www.fla.org.uk/media/240510_q1_asset

Leasing will help to fix 'Rusting Britain' writes Helen Loveless in the Financial Mail

Helen’s column in the Financial Mail (The Voice of Small Business) discusses the lack of investment by business into replacing their old equipment and how lease finance may be the answer for firms struggling to access capital.

This drop in investment has been caused by a lack of cash flow, lack of internal resources, uncertainty over growth and increases in the cost of new equipment combined with the difficulty in accessing finance.

Julian Rose, head of asset finance at the FLA, says “The fall in expenditure on business equipment is far worse than during both of the last recessions. This suggests that firms are taking longer to replace capital equipment at a time when the service life of many assets tends to be shorter than before, for example machinery becoming more obsolete more quickly”.

“With technology advancing so quickly, many firms may be left with outdated equipment that could badly affect their competitiveness”.

Asset finance, which includes leasing and hire purchase and is typically provided by leasing firms, manufacturers, brokers and banks, is used to fund nearly 30 per cent of business capital investment. Around 750,000 small and medium-sized businesses currently use leasing to hire equipment, typically for three to five years.

Stephen Alambritis, the chief spokesman for the Federation of Small Businesses, believes leasing is an option worth considering, “leasing as an option should definitely come into its own in these difficult times”.

Read the full story here.

Shire Vehicle Solutions (SVS) is a new business unit offering existing Shire Customers, Suppliers and Introducers access to highly competitive fleet discounts on cars and commercial vehicles. SVS can provide everything from one-off vehicle supply through to the purchase of an entire fleet of vehicles.

SVS have secured discounted supply terms directly with 12 major car manufacturers to ensure that we are able to offer highly competitive pricing on both on the vehicles and the finance. In the early stages, SVS will concentrate on marketing the products of the manufacturers that have supported us, which include:-

• Ford
• Jaguar
• Mitsubishi
• Honda
• Kia
• Hyundai
• Fiat
• Alfa Romeo
• Citroen
• Peugeot
• Seat
• Nissan

SVS can offer a range of flexible solutions for vehicle finance including:

• Contract Hire
• Contract Purchase
• Lease Purchase
• Finance Lease

SVS will be supported by a dedicated web page on the existing Shire website that will allow customers to provide details of the vehicle they require, including the make and model and the monthly budget they have to spend.

A full Shire Vehicle Solutions website will launch in the coming months to bolster the service and will include pictures and full specifications of all the different vehicles on offer.

This addition to the company’s portfolio is designed to compliment the other financial services which include equipment leasing, asset finance, debt recovery and insurance services.

Shire’s core service remains working with equipment suppliers to enable them to offer leasing, but the addition of these services is designed to provide them and their customers with a one-stop shop for all their financial requirements.

2010 has started brightly with an increase in the amount of equipment suppliers wanting to offer lease finance to their customers, through Shire, as an alternative to cash options.

 

Shire specialise in offering finance for:

 

• Catering equipment leasing
• Vending equipment leasing
• I.T equipment Leasing
• Telecoms equipment leasing
• Lifestyle equipment leasing
• Security equipment leasing

 

The same goes for Shire’s homeowner & business loans, invoice finance and commercial mortgages as many businesses look to improve their cash flow during this tough period.

 

Business asset finance is also on the increase as companies look for alternative sources of funding for new equipment to improve the services they offer.

 

Shire Leasing will continue to provide tailored finance solutions for businesses in the UK and aim to deliver the same levels of excellent customer service as the previous years.

As it comes to the end of a busy year, Shire Leasing can reflect on the progression and changes that have happened within the company, over the last 12 months.

 

As part of its continued growth two new services were introduced during 2009, Shire Commercial and Shire Insurance Services.

 

Shire Commercial are specialist providers of asset finance ranging from the printing equipment to commercial vehicles. They can also offer block discounting; capital raising and tax based leasing.

 

In March Shire Insurance Services was formed, enabling Shire to cover anything from customers leased equipment to their entire business, offering full support throughout process and in the event of claim.

 

Shire has improved their unique online management system, “Leaseman Online”. The new system which was launched in November this year, allows suppliers to manage their leasing facility online, 24 hours a day at a time that suits them. This kind of access in essential to suppliers who offer leasing as a realistic alternative way to purchase.

 

Currently Shire are developing a new interactive website for their Direct Customers as they look to increase the level of service to people coming to Shire for funding.

 

Top of Shire’s list for helping businesses in 2010 is the support that’s provided after their leasing facility has been implemented. Going forward there is to be an increase in the free “How to sell with Leasing” training seminars which are open to all of Shire’s suppliers.

These training seminars are targeted at sales staff with varying degrees of experience in leasing, and aim to give them another tool with which to sell their products. The uptake and feedback has so far been excellent and another 2 have been set-up for the coming year.

Requests for this type of training has been on the increase, as established businesses and new-starts alike, look to business equipment leasing to improve their cash flow.

Multi-service Organisation

Another way Shire can help businesses is by adding value to the services they already offer. These include debt recovery, insurance, asset finance and cash flow solutions such as invoice financing, homeowner and business loans.

The aim is provide a one-stop shop for all of our customers, offering bespoke financial solutions to cope with the ever challenging business world.

Since the new website was launched in October this year Shire have seen a significant increase in the number of leads developed online.

The new website includes includes specific contact email addresses for each service, giving visitors direct access to the inbox of the department they require. This not only gives users confidence that their request will get through to the correct person, but also improves the response time of Shire staff getting back to any queries.

The new website was launched to give Shire a more professional presence online and to provide visitors with a simple, clear website that is easy to navigate and promotes all of the services on offer.

As well as sales-aid business leasing the other services available include, debt recovery, insurance, invoice and asset finance.