Asset Finance versus Cash Purchase Study

The Manufactures Organisation produced this article back in May of this year and I found this via Leasing Life our trade magazine. Its still relevant and gives a good flavour of sentiment about buy business equipment with Asset Finance and Companies using cash reserves to fund capital purchases.

Its great to see that 86% of manufactures that chose a financing option to fund the equipment purchase used an asset finance or leasing solution. Clearly asset finance is doing its job and knowledge of the product is helping business owners fund their plans.

One area of the article that is of concern, is that there is still a level of uncertainty within the manufacturing sector and where uncertainty is present the manufacture may not commit to the future, withdraw, and only buy capital equipment for Cash if the business can spare the money.

I really think this feeling of uncertainty is holding the UK economy back and lack of growth almost becomes a self fore-filling prophecy. Naturally this is an over simplified view and business owners should clearly not over commit. However, if we could generate a level of optimism and innovate ourselves  out of this recession life would be better.

Have a read of the article –  Asset finance is strong but cash is king for manufacturers and if you would like to know more about the manufactures organisation there is a link here too.