Yorkshire and Humber most successful region in UK at using asset finance to support employment, report finds
Yorkshire and the Humber is also the region contributing the second highest to overall Gross Domestic Product (GDP), coming in at £165 million annually. However, the research also found that increased use of asset finance amongst eligible Yorkshire and the Humber SMEs, has the potential to contribute £1.34 billion annually to national GDP and up to 25,800 jobs by 2025.
Nearly half of Yorkshire and the Humber SMEs (46 per cent) say they are considering expanding their use of asset finance over the next few years.
Jit Nijjar, GRENKE national sales manager, based in Yorkshire and the Humber , said: “It is hugely exciting to see the potential that Yorkshire and the Humber offers and the role that the Leasing industry can play in supporting many of the local businesses’ ambitions.
"Working closely with SMEs across the region, we know just how important their contributions to their communities are - from economic benefits to a wide-ranging number of jobs.”
Looking more broadly at the rest of the country, the Lease of Life report found over half the UK’s SMEs are relying on credit cards to support their businesses day-to-day. As a region, Yorkshire and the Humber sees one of the highest uses of credit cards with over half (51 per cent) of SMEs using this as a primary form of financing.
The survey of 600 business owners across the UK reveals that after credit cards, business overdrafts and bank loans are jointly the second most popular form of financing amongst SMEs. Two fifths (39 per cent) of respondents use these options.
Meanwhile, a third (33 per cent) reported that government loans are their primary form of financing, reflecting the high levels of government financial support provided to businesses following the onset of the Covid-19 pandemic, and more recently the energy crisis.
Looking more closely at alternative forms of finance available to SMEs, whilst two-thirds of respondents have considered using asset finance, one in 10 across the country feel they don’t have access to sufficient knowledge or information to choose this option.
Commenting on the findings, David Horton, Managing Director of Sales, GRENKE UK, said: “Our landmark Lease of Life report has showcased not only asset finance’s current contribution to SMEs and the wider economy, but also the potential opportunity for the growth that this form of finance can offer.
“It has also made clear that many of the UK’s SMEs still have limited knowledge of the various forms of financing available to them. As high interest rates begin to hit on demand, employment, and business confidence across the economy, it is critical SMEs are clear on the financial options available to them and are able to unlock the potential for future growth.”