The value of new asset finance deals involving commercial vehicles rose by almost ten per cent in January on the same month in 2014, according to new data from the Finance & Leasing Association (FLA).
The data, released on 6 March, shows that overall, new deals involving asset finance – primarily leasing and hire purchase – was up by 13 per cent in January 2015, to a total of £1.9 billion, on the same month in 2014. New business was up by the same percentage for the 12 months to January 2015, to reach £25.5 billion.
Commercial vehicle finance rose by seven per cent in January on January 2014, to a total of £451 million. Meanwhile, new business for the 12 months to January 2015 increased by 11 per cent, to a total of £5.8 billion.
Asset finance can be a flexible way to release working capital while allowing the purchase of commercial vehicles and equipment including HGVs and trailers. Businesses considering entering such arrangements need ensure they are fully aware of the legal implications of the asset finance agreements and ensure deals are structured correctly.
At Palmers, we can provide expert advice to business owners on corporate finance issues, including asset finance, debt finance, equity finance and venture capital. We can also advise in relation to business transactions, such as mergers, acquisitions and sales and management buyouts. For more information, please contact BJ Chong.