“Every business has its own requirements and opportunities that asset finance can support – from independent traders looking to secure loans for a new vehicle, to listed entities looking to acquire a business through a structured asset-backed facility. “
In FY21, there was a significant increase in new asset finance lending across a wide range of asset classes including transportation, construction, agriculture, aircraft and shipping, computers, motor vehicles and earthmoving machinery. Growth in some areas has exceeded 150 percent.
Strongest growth in new loans during FY21 by asset group *:
- Aircraft and navigation +150 percent
- Earthmoving equipment + 120%
- Agriculture +50 percent
- Motor vehicles / Light advertising + 40 percent
- Trucks and trailers + 35 percent
Strongest growth in new loans in FY21 by asset group for businesses and specialized agricultural businesses:
- Earthmoving, mining and construction assets + 270%
- Crédit Agricole Spécialisé +240 percent
- Manufacturing + 120%
“We have seen many large companies and specialty agricultural customers acquire asset-backed facilities to modernize factories and manufacturing sites or entirely new projects,” said Mr. Vacy Lyle.
Fortunately, despite current foreclosure restrictions in many states, we are already seeing strong demand for asset finance in FY22.
“By saying this, we know that is not the case for all businesses, and the lingering uncertainty surrounding COVID-19 and lockdown restrictions are impacting some of our customers. We have a range of supports available for those who need help in the coming months. “