New UK research shows that UK SMEs have a bullish attitude towards investment over the next 12 months. SMEs are most likely to invest in IT equipment, cars, vans and plant & machinery.
Research carried out for London-based SME asset finance and leasing specialist Norton Folgate revealed that of 400 surveyed four in 10 (39%) of SMBs planned to invest in new IT equipment over the next 12 months, spending an average of £5,290 each.
Cars are the second most popular working asset among SMEs, 18% of business owners planning to acquire at least one over the next year, spending on average £14,496.
Plant & machinery (12%) and commercial vehicles (11%) are in third and fourth places with SMEs spending an average of £7,426 and £11,163 on these respectively
According to the findings, 10% of SMEs intend to use asset finance and alternative finance to acquire their working assets, underlining the growing popularity of this sector. Indeed, more than half (53%) expect demand for alternative finance – including asset finance – to increase over the next two years.
Norton Folgate, part of the Amicus Group since 2015, reports seeing a significant increase in the number of enquiries among SMEs. Robert Keep, Founder and Principal, said: “Most SMEs understand the critical importance of up to date IT systems and this is reflected in their willingness to invest in new equipment over the next 12 months.
“We’re finding that many small business owners increasingly see the value of using asset finance to acquire these rather than tying up working capital or turning to bank overdrafts and expensive credit cards. Being part of Amicus has put us in a very strong position to further enhance our asset leasing and finance capabilities.”
John Jenkins, CEO of Amicus commented: “It’s encouraging to see such significant numbers of SMEs are committed to investing in their working assets and the growing importance of asset finance. Norton Folgate has built a very strong reputation in this field and is playing an integral role in our strategy of offering a diversified range of specialist lending services.”
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