Brexit disruption delays asset finance decisions

Although there are reports of disruption, it is business as usual for a sizeable proportion of the economy.

United Trust Bank analysis revealed that one-third of finance brokers (33%) do not believe that Brexit is having a negative impact.

At Mulberry Asset Finance, which deals in lending for vehicles and machinery, executives agree with the findings of the study, as potential customers want certainty and clarity, whether they supported Brexit or not.

Mike Robinson, a partner in the company, said: “Most people in small and medium-sized enterprises, from hauliers to engineers, voted to leave the EU, now they just want the government to get on with it. In the longer run, they don’t feel that Brexit will affect them.

“The government needs to reassure business that all will be well; the Bank of England and the media are peddling a line of project fear which is unfounded.”

HTF Transport, a leading haulage and logistics company, has defied the uncertainty by expanding its fleet via an asset finance deal with Santander.

Lance Bromley, a director of the company, said: “We don’t think that Brexit has been an issue for us, we are continuing our growth, hiring specialist trucks and expanding. There is also the HS2 project which will bring us further opportunities.

“As for Brexit, we have no real problems with it at the moment, but I don’t think anyone knows where it is really going. There are businesses out there that do not want to over commit while the uncertainty is ongoing.”

Keith Sangwin, head of sales – asset finance, United Trust Bank, believes a competitive finance market is benefiting companies that seek funding.

He added: “The rates we are now able to offer customers with solid trading accounts and consistent credit histories are the lowest they’ve ever seen. We are keeping a very close eye on the economy and taking account of all contributing factors, not just Brexit.

“The next 12 months are going to be very interesting. Politics and the economy are going to continue to dominate the news, but many businesses will not be directly affected by Brexit and will continue operating much as before, serving a UK or even more local customer.”