How big is the UK Asset Finance Market?
The UK asset finance market is a thriving and has become a vital component of the nation’s economy. With an estimated value of approximately £70 billion, it encompasses a wide array of financed assets, including machinery, vehicles and equipment.
This market boasts a high level of competitiveness, with numerous lenders operating within it. Banks, specialist commercial finance providers and leasing companies all contribute to the diversity of options available. The market itself has a well-established presence and a long-standing history of delivering financing solutions to both businesses and individuals.
One of the driving forces behind the UK asset finance market is the flourishing business community. There are large amounts of businesses which rely on this type of finance so that they can purchase new equipment and vehicles.
The growth in finance models such as peer-to-peer lending and crowdfunding has been important in moulding the UK asset finance market. These innovative approaches have disrupted the traditional lending landscape, offering businesses fresh and alternative funding sources.
In recent times, the equipment leasing sector has experienced considerable growth within the UK asset finance market. It has emerged as a popular financing option for businesses as it enables them to spread out the cost of equipment purchases over an extended period, thus reducing upfront expenditure.
The UK asset finance market owes much of its strength to the nation’s robust and stable financial sector, supported by a resilient economy. With a well-established banking system, businesses in the UK have access to a wide range of financing options, including traditional loans, overdrafts and asset finance.
Although the asset finance market is known for its notable size and resilience, market is not impervious to challenges and risks. The ongoing uncertainty surrounding Brexit serves as a prime example, injecting an element of economic instability that reverberates across the lending landscape.
It is important to be well-informed in order to navigate ever-evolving circumstances. You can effectively navigate challenges and capitalise on the opportunities presented by asset finance markets as long as you are armed with comprehensive knowledge. Businesses can make informed decisions and seize the available financing options to foster their growth and achieve success.