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November 2012, London – Commenting on ING’s announcement that it is to exit the UK asset finance market, Ian Isaac, Managing Director of Lombard’s Business & Commercial (B&C) division, states, “While we understand that the reasons behind ING’s decision are connected to a wider global business strategy rather than local product performance, we are sorry to see such a respected player leaving the market at a time when asset finance is becoming an increasingly important funding method for UK businesses.


“At a time when overall aggregate lending is in decline, asset finance has been growing year on year and according to the Finance & Leasing Association (FLA), its members financed 31.4% of UK fixed capital investment in the second quarter of 2012 and in the nine months to September 2012, this market has grown by 6%, to £16.1bn. We see this growth continuing.

“Businesses are becoming much more switched on to the lending options open to them, and aware of taking on debt that is appropriate to their requirements. There is a recognition that when investing in equipment, whether plant and machinery, commercial transportation or even technology, using asset finance not only reduces the risk of purchase but provides greater financial flexibility, spreading costs and freeing up essential cash flow.”


Investment is at the heart of the UK’s recovery and at October 2012, Lombard had seen a 16% year on year increase in its lending to the market as these businesses purchase newer, more efficient equipment to enable them to take advantage of continuing strong markets, such as those in export sales.

Sectors such as manufacturing, agriculture and commercial transportation are also showing significant increases in investment through asset finance. At October 2012, Lombard's year on year lending to manufacturing was up 77%, up 22% to the agriculture sector and in the commercial transportation sector it increased by over 50%, demonstrating the company’s ongoing commitment and support for UK businesses as a whole.

Isaac concludes, “Asset finance is a very accessible product that has come into its own during the economic downturn. We believe that, as a form of funding, it will continue to grow as the economic climate improves. At Lombard we are committed to helping UK businesses secure the funding that they need for their capital investment to help their businesses grow and succeed.”

ENDS

About Lombard

As one of the largest asset financiers in the UK and voted best by Business Moneyfacts in 2009, 2010 and 2011, Lombard provides various forms of asset finance to businesses of varying sizes – from SMEs to large corporates. Products include Hire Purchase, Finance Lease, Operating Lease, Sale and Leaseback, Contract Hire, to Contract Purchase, as well as multi-specialist asset finance products such as marine, aviation and specific wholesale and stocking funding for distributors and dealerships.

Having celebrated its 150th anniversary in 2011, Lombard is headquartered in Redhill, Surrey and has an extensive network of business centres situated throughout the UK,. Lombard is an appointed representative of The Royal Bank of Scotland plc, which is authorised and regulated by the Financial Services Authority.

For more information contact:

Karyn Theron, Communications Manager, Lombard
+44 771 780 7092
karyn.theron@lombard.co.uk





This press release was distributed by ResponseSource Press Release Wire on behalf of Wychwood Communications in the following categories: Business & Finance, Farming & Animals, Manufacturing, Engineering & Energy, Transport & Logistics, for more information visit https://pressreleasewire.responsesource.com/about.