IT and technology the principal focus for leasing as confidence grows in UK firms

In the 12 months to July 2015 IT equipment finance grew by a significant 35% to reach a total of £1.9 billion.

A recent survey by Lombard reveals that of businesses which have invested in assets in the last year, nearly seven in 10 (69%) have spent on IT and technology.

The study shows that over two-thirds of all respondents think their business could benefit from innovation in technology and believe that improved technology would increase efficiency (62%) and help them become more competitive (45%).

And 78% of survey respondents are keen for the UK government to do more to support them in encouraging ongoing investment in new technology.

When looking at motivations for investment as a whole, a desire for efficiency was once again prominent, as 80% of businesses listed it as a reason for them investing. Other notable factors were a wish to increase turnover/profit (84%) and to keep up with the competition (83%).

Half of businesses (50%) said they were investing to secure future growth, with a further 27% investing to replace ageing equipment. Only 10% are not investing and have no plans to do so in the future.

The research also reveals that confidence in the UK economy is growing, with 67% of UK businesses saying they are more confident than they were 12 months ago.

Commenting on the survey results, LTS managing director, Duane Snelling, said: It’s clear that UK businesses have an appetite to invest in line with increased levels of confidence in the economy.

“IT and technology are the key areas of investment, which demonstrates a desire among firms to boost efficiency levels and stay one step ahead of their competitors.

“Businesses wishing to invest can do so in a variety of ways and at LTS we’re seeing increasing numbers of firms using asset finance as a means to acquire the technology they need.”