"The Chancellor’s support measures, combined with the bright outlook for 2021 means that investing in the right assets could not only represent a benefit for the business, but a boost for the broader economy."
Asset finance in the post-pandemic world
Over the last 18 months, the lending environment has been turned on its head, creating extraordinary circumstances in which businesses, brokers and lenders have had to operate.
According to the OECD the UK economy is set to be the fastest growing economy among the G7 and the intent is the from Government to enable SMEs to be part of that momentum, invest in assets and help their business thrive. Earlier this year, Chancellor Rishi Sunak, announced a super deduction to allow businesses to slash their taxes by up to 25p for every £1 invested. For example, a construction firm wants to invest £400,000 in new equipment in response to new business, that firm will normally be able to claim £520,000 capital allowances.
The Chancellor’s support measures, combined with the bright outlook for 2021 means that investing in the right assets could not only represent a benefit for the business, but a boost for the broader economy. A constructive broker-funder relationship can ensure the correct investments are made by identifying the right solutions for individual businesses, ensuring that they are part of the boom.
There has never been a better time for commercial brokers to consider asset finance options for their clients, but it is crucial to use funders with experience in a broad range of assets.
When brokers are looking to funders to get the right finance for their client, they first look at the business, the sector in which they operate and the types of assets they need. Secondly, it’s about identifying a lender with extensive and specific expertise, enabling them to finance specialist assets. Finally, it is key for a funder to be flexible. When talking to a broker, the funder must be able to offer an appropriate solution to the clients’ needs.
There is not a one size fits all finance solution, and they vary depending on the size of the business and the sector. Consequently, it is essential for funders to understand the environment in which the client operates and to come up with a tailored response.
At White Oak, we pride ourselves on our cross-sector expertise and we love working with brokers to unravel solutions that suit their clients’ needs. We understand that no two cases are the same and we’re committed to going above and beyond to find a tailored solution for every client.