Independent leasing companies claim to be riding the wave of the
UK’s credit crunch and report an upsurge in latest profits.

This comes despite a lowering of inter-bank lending which is
expected to impact on cash availability in the leasing
industry.

The Davenham Group, which lends to SME businesses, said there
were no signs of arrears or distress among its private company
customers. It even claimed its market will be enlarged as banks
stop lending to small businesses. Its loan book grew organically by
33 per cent during H1 2007.

Cattles, a UK lease finance provider, reported a year-on-year 28
per cent hike in profits during H1 2007, and increased its customer
base by 12 per cent to 458,000 during this period.
However, John Bennett, head of vendor finance at Bank of America,
said: “Not only will independent leasing companies get pushed out
of the market, but in the likely event that the crisis will affect
economic growth, investment levels will fall and prices – as well
as risk – will go up for lessors.”