A recent banking study by independent banking researcher East & Partners revealed how 20% of small to medium sized businesses are looking to source equipment finance in the coming months.
Refreshingly, this reflects a more upbeat attitude in the marketplace contrasting with the gloom of just 12 months ago. The research showed that demand for equipment finance is up by 4.8%, a big turnaround from the fall of 1.1% a year ago. Put another way, which equates to a massive increase in growth across the entire market of 6.6% in the past 12 months alone, which includes sectors like manufacturing, mining and construction.
Asset and equipment financing will be the winners representing some 25.5% of all borrowing intentions. Yet what must be troubling for the big four banks are reports indicating that 20% of companies are likely to forego their incumbent finance provider, seeking a financier provider with lower rates and charges, with a simplified and easier credit process.
This is what brokers like Finlease deliver, day in day out. So banks can no longer rest on their laurels and assume the business will automatically come their way. As Mark O’Donoghue pointed out, “We have discovered that 94% of these businesses would consider migrating their whole of banking to one where the client has had a positive experience in equipment finance. Suddenly we see how much the game has changed”.
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