News: Lombard sees increase in asset financing for manufacturers
Rotherham-based Lombard, one of the UK's leading asset finance providers, has seen year-on-year lending to the manufacturing sector increase by 77%.
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.
At October 2012, Lombard had seen a 16% year on year increase in its lending to the market as businesses purchase newer, more efficient equipment to enable them to take advantage of continuing strong markets, such as those in export sales.
Lombard's year on year lending to manufacturing was up 77%, in the agriculture sector it was up 22% and in the commercial transportation sector it increased by over 50%.
One example is the £1m hire purchase solution for project manufacturing specialist, MTL Group, enabling it to purchase state-of-the-art equipment for its relocation to new premises in Rotherham.
Ian Isaac, managing director of Lombard's Business & Commercial (B&C) division, said: "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.
"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."
Lombard recently celebrated its 150 years in business since starting out as the North Central Wagon and Finance Company in Rotherham in 1861.
In 2007, the RBS group moved their Lombard business across Rotherham from Moorgate to the state-of-the-art Cyan building at Manvers, relocating around 600 staff.
Lombard website
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.
At October 2012, Lombard had seen a 16% year on year increase in its lending to the market as businesses purchase newer, more efficient equipment to enable them to take advantage of continuing strong markets, such as those in export sales.
Lombard's year on year lending to manufacturing was up 77%, in the agriculture sector it was up 22% and in the commercial transportation sector it increased by over 50%.
One example is the £1m hire purchase solution for project manufacturing specialist, MTL Group, enabling it to purchase state-of-the-art equipment for its relocation to new premises in Rotherham.
Ian Isaac, managing director of Lombard's Business & Commercial (B&C) division, said: "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.
"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."
Lombard recently celebrated its 150 years in business since starting out as the North Central Wagon and Finance Company in Rotherham in 1861.
In 2007, the RBS group moved their Lombard business across Rotherham from Moorgate to the state-of-the-art Cyan building at Manvers, relocating around 600 staff.
Lombard website
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