Leasing industry can aid recovery, says FLA

Date: 16th June 2010

Businesses operating in the UK can save money on expensive equipment and still make sure they have the necessary tools to aid their recovery by leasing.

This is the view if the Finance and Leasing Association (FLA), which has written to George Osborne ahead of next week's emergency Budget to stress the importance of helping business investment.

According to the FLA, one-third of UK businesses are already leasing equipment as they cannot access other forms of lending.

The organisation said that this model of borrowing help firms avoid the need to find the full purchase price when new equipment is required.

Julian Rose, head of asset finance at the FLA, said: "The leasing industry can help economic recovery by directly funding the equipment needed by business and the public services.

"But to do that we need two things: a fair tax system that does not - as at present - favour the purchase of equipment over renting; and the removal of unnecessary barriers to the use of leasing by public services, so allowing public money to be spent cost-effectively on newer, energy-efficient equipment."

Posted by Anthony Burns