Businesses turn to leasing as credit remains unavailable, report claims
An increasing number of firms are turning to operating leasing schemes during the continuing lack of access to credit, according to a report by the Finance & Leasing Association (FLA).
The FLA figures show that while asset finance fell by 39% during the second quarter of 2009, the use of operating leasing schemes (excluding cars) rose by around 9% over the same period. Around £1 billion worth of equipment was acquired through operating leasing, which is where items are replaced or upgraded at the end of the rental period and old equipment given back to the lessor. A spokesperson for the FLA said that operating leasing is attractive to small firms as this method allows them to update equipment regularly.
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