AF50 2024: Will the Budget Announcement Encourage More SMEs to Seek Asset Finance?
White Oak UK has been named one of the top 50 asset finance providers in the UK, achieving high growth rates and climbing six ranking positions.
Key Insights:
- One in four SMEs fear closure if the economy doesn’t improve.
- The Autumn Budget announcement imposes a larger National Insurance burden on employers.
- The UK asset finance market shows slow but steady growth.
- White Oak UK exhibits the highest growth rates and the most positions climbed in the AF50 report.
How Will the Autumn Budget Announcement Affect SMEs?
SMEs want the new government to address their primary concerns, including reducing the tax burden and VAT, tackling the late payment crisis, and preventing unaffordable energy bills. However, the “£22 billion black hole” that Reeves has inherited means businesses now face increased NI burdens. Employer contributions will rise by 1.2 percentage points to 15% from April 2025, while the secondary earnings threshold will fall dramatically from £9,100 per year to £5,000. Reeves stated that these measures aim to raise £25 billion per year.
The Asset Finance Market Remains Steady and Supportive
As businesses assess the potential impact of the Budget, many will likely face an increased tax burden. Asset finance offers a way to preserve valuable funds by spreading the cost of acquiring or refinancing business-critical assets. The Asset Finance 50 UK Report (AF50) continues to show slow and steady growth in the UK’s asset finance market. Fewer SMEs are turning to traditional bank lending, highlighting asset finance as a vital lifeline for securing success and growth during challenging times.
What Is Asset Finance?
Asset finance allows SMEs to acquire business assets, such as vehicles and machinery and spread the upfront cost over an agreed term. Alternatively, businesses can use existing assets as collateral to release value and repay the amount over time.
Why Choose White Oak UK’s Asset Finance?
Whether you need regular fleet upgrades or an IT overhaul, asset finance helps you stay competitive while exploring new opportunities. The asset finance industry is the largest buyer of business asset types in the UK, making financing accessible for all. Recently, total net investment in leases has steadily climbed, reflected in White Oak’s growth rates. In the last reported year, we grew by 73% and achieved a total net lease investment of £153 million, demonstrating our resilience in tough economic times and our commitment to supporting small businesses.
These strong partnerships can also help you meet sustainability commitments. Asset finance unlocks funding for investing in both emerging and essential technologies, such as electric vehicles or renewable assets that provide a positive ROI for your company.
Find out more about our SME Asset Finance here.
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