SME Demand Surge Spurs Asset Finance Trend Shift, Time Finance Reports

SMEs are Turning Up the Heat on Long‑Term Asset Deals

Time Finance’s freshest figures show that small and medium‑sized firms are loitering around longer‑term financing, especially when it comes to hire purchase and refinancing. The shift is reshaping the way businesses think about growth and capital.

Hire Purchase: A 26% Surge

From 2021/22 to 2022/23, Time Finance topped up its hire purchase portfolio by 26%.
Manufacturing and construction firms now look to boot up hard assets—think cranes, forklifts, and steel—creating a new playground for investors.
Long‑term thinking is no longer a fringe idea—it’s becoming the norm for strategic investments.

Refinancing Wins the Moment

SMEs are eager to unlock working capital through refinancing, a tactic predicted to dominate the market in 2024.
By tapping existing contracts, companies gain the liquidity needed for expansion without the need to go out and chase fresh credit lines.
Time Finance sees this as a clever, “smart” approach—essentially, a one‑stop shop for capital‑boosting.

Record 2023: An 18% Upswing Across the Board

From 2021/22 to 2022/23, the total value of asset finance facilities surged by 18%.
This quantified boom translates into a bigger lending book that fuels more growth projects.
The numbers align with the Finance & Leasing Association’s (FLA) data, which reported a 15% jump in new business over the first eight months of 2023.

What Steve Nichols Had to Say

Steve Nichols, Director of Asset Finance at Time Finance sums it up: “We’re seeing some pretty interesting shifts—businesses are cautiously optimistic, yet once again, they’re focusing on the long haul.”

He adds, “Our brokers are ringing in a lot of refinancing enquiries, which tells us firms are showing prudence in unlocking working capital. They’re not splashing cash on short‑term fixes; they’re strategically positioning for future growth.”

Bottom Line

SMEs are getting serious about long‑term acquisitions and refinancing.
The trend mirrors broader industry data and signals a shift toward more thoughtful capital planning.
As companies gear up for 2024, Time Finance’s upward trajectory indicates a resilient, growth‑oriented economy.

Asset Finance: Turning Cash Challenges into Growth Opportunities

When a business pops up capital from a new lender, how it spends that money can make or break its future. Some folks pour it straight back into expansion, others use it for a management buy‑out, and a healthy chunk of companies simply plug it into their cash‑flow bottle rockets.

The Rising Trend: Hire Purchase Goes Turbo‑Charged

26% jump in hire purchase deals last financial year.
Ideal for assets that hold their value—think trucks, machines, or even fancy software contracts.
Pairs beautifully with increased refinancing inquiries, painting a picture of companies building financial agility.

When you see more businesses leaning into asset finance, it’s a sign that they’re taking the long road and planning for the future with a clear strategy.

Why Traditional Lenders Pull the Plug

In economic turbulence, banks become risk‑averse—and that means fewer options for small and medium enterprises. But that’s not the path businesses need. Flexibility isn’t a wish‑list; it’s survival.

Enter alternative finance—a space where SMEs are finally waking up to the world of possibilities. The market’s shifting gears, and more companies are finding their way toward asset finance as a reliable lifeline.

Time Finance: The Partner You Need

Time Finance gives UK businesses a full menu of asset solutions:

Flexible repayment options that keep cash surplus alive.
Protects day‑to‑day cash flow while investing in equipment that actually moves the business forward.
Bridges the gap between growth and stability—no more juggling with risky loans.

So if you’re feeling stuck behind a safety net of traditional lenders, Time Finance is here to give your business the boost it deserves.