Aldermore comments on FLA figures showing increased demand for commercial vehicle finance
Commenting on the Finance & Leasing Association’s figures showing increased demand for commercial vehicle finance, Carl D’Ammassa, group managing director, business finance, at Aldermore Bank, said: “Based on what we are hearing from our clients, we are not surprised by the figures from the Finance & Leasing Association showing that finance for commercial vehicles on lease and hire-purchase agreements rose 10% to the year ending August 2015.
“Despite uncertainties around the UK’s future in Europe, we have seen a growing optimism from the UK logistics industry underpinned by positive economic indicators and the expectations of ongoing low oil prices. This optimism has resulted in increased demand for asset finance from logistics companies, many of which are small businesses that delayed investment when the sector slowed during the economic downturn.
“We have certainly witnessed a growing demand for vehicles right across the supply chain, from the transport of goods and materials between manufacturing plants to warehouses to the delivery of products to consumers’ homes and offices. As online commerce continues to grow in popularity, the logistics industry will need to expand and we expect demand for funding to finance the lease and purchase of commercial vehicles to remain strong.”