Finance for Small and Medium-Sized Enterprises - DTI Home Page

Finance for Small and Medium-Sized Enterprises: A Report on the 2004 UK Survey of SME Finances
Figure 9.2: Distribution of the Number of Leasing or Hire-Purchase Agreements
70%
60%
50%
40%
30%
20%
10%
0%
1 2 3 4 5 6 7 8 or more
Number of Leasing or Hire-Purchase Agreements
B ase: All SMEs with Leasing or Hire-Purchase Agreements N = 672,331
(Unweighted N = 926)
This chart shows that, among businesses using asset finance:
• 2 in 3 ha ve one lease or hire-purchase.
• About on e-third have m ore than one leasing or hire-purc hase agreements.
Failure to make repayments Businesses were asked h ow many times they had failed to make any kind of
repayment on an asset
finance agreement
in the last 12 months. Analysis of these
responses is given in Table A9.1. These results show
that, among users of asset
finance, 1.5% failed
to make at least
one repayment
in the last year.
Tax
Limited
companies, using asset finance, were asked whether the availability of
accelerated capital allowances influenced their decision to use asset finance rather
t han purchase
the asset outright ( N = 280,670, N = 633). 42% of these companies
p
said they were aware of such allowances. Of those companies
that were aware of the
allowances
( N = 116,588, N = 336), 40% said they took them into account when
p
deciding
whether to lease or purchase the asset outright.
p
108