No, not by us, but keep checking in with us until 2019 and beyond who knows!

New asset finance business reached £25.4bn (€33.68bn) in 2014, an increase of 13% compared to the previous year and is projected to surpass it’s pre-crisis peak in 2015.

Business equipment finance increased by 13% in the same time period, reaching £2.185bn, while IT equipment finance saw a 5% growth on its market with £1.624bn provided to companies.

The alternative finance sector has become mainstream, offering credible and an increasingly recognised route for business funding. The exponential growth of innovative platforms providing access to funds from the general population is testament to that. Now that the wider economy is taking its tentative steps towards sustained growth there will inevitably be a greater appetite for borrowing to fund projects contributing to growth and finance those purchases that were delayed during the past uncertainty.

While this rapid growth has made access to finance a reality for business again, it remains fragmented and in order to navigate and select the right product from the right provider it is as important as ever to engage with professionals who know the market. Convenience, integrity, flexibility and speed of service. These are the key factors that have made alternative finance products such as leasing, hire purchase and short term business loans an appealing alternative to traditional bank lending.

What should we look for:

  • Simplicity: Products and processes that are simple, clear and transparent. The business should always be able to understand what they’re signing up for, this includes all the terms and conditions.
  • Suitability: It is important that companies take the right funding product for their immediate business need. In the same way, in the retail finance market, that a mortgage is an inappropriate product to finance a short term debt such as a car purchase, alternative lenders must ensure that the right funding instrument is provided for the customer to assist their current requirement. Matching the term and suitability is as important in business finance as it is with your personal finances.
  • Price: How do we assess fair price? There are a number of objective and subjective factors to consider here: Cost of funds, security, risk assessment, term etc. It is unlikely there will ever be a formula or tariff to calculate a universal pricing so it is important to ensure the pricing provided is affordable and importantly clear from day one. Clarity of price on inception to completion will ensure accurate budgeting during the lifetime of the agreement.

At Claratus we can offer all of the above and more, get in touch to discuss your finance needs.