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Equipment finance in 2011

The hire purchase and leasing market in 20011 is predicted to remain fairly tight and restrictive. There are still a few high street banks offering decent rates and there are still a few independents offering prime rates also. The fact remains that are still fewer finance companies than there were before the credit crunch.

Although there are a few finance companies entering the market. Aldermore at the beginning of 2010 and much later in the year Conniston came across the water from Isle of Man. with any new finance comapnies entering the market this is great news however there is always a bedding in period as they find their place within the market.

Asset based lending remains strong although there a fewer options than there used to be, The most obvious company being Davenham which ceased trading at the back end of 2010.

As per usual if you have a very strong balance sheet it can be relatively easy to obtain funding for asset and equipment finance. It is also relatively easy to obtain funding if you have plenty of value within your equipment. The problem arises is if you have a weak balance sheet and you need to purchase or refinance assets with very little residual value. Caught between a rock and a hard stone comes to mind.

XL Business finance has helped many businesses with their capital expenditure plans. We provide an honest and straight forward approach and always have the businesses best ineterst at mind. Give us a call today to find out how we can help you.

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