Leasing Easier To Underwrite Than HP For Businesses

Wednesday, 3. March 2010

Small businesses are finding it more difficult to finance vehicles using their traditional and most popular methods of finance, HP, business loans and overdraft. It seems that more are now turning to leasing, according to Fleet News, as it is easier to arrange the finance, reduces the risk and spreads the funding around. Last year, according to the Finance and Leasing Association (FLA), financing new and used cars to businesses, using the traditional methods, were down by around 20%. Audi’s head of fleet sales, Iain Carmichael, explained that he saw higher risk in SME’s but saw how leasing could help to replace cars financed using outdated finance. Of course I hope he’s right, helps me to pay the bills! By Graham Hill