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Asset Finance and SMEs (March 2009)

Small business finance has been a recurrent theme of the Quarterly Survey of Small Business in Britain. The patterns revealed in the successive surveys confirm the findings from earlier major studies that most small firms, especially the very smallest and non-growth firms do not make use of external equity and try to avoid debt capital.

In general, most small firms in Britain rely strongly on personal and family savings, retained earnings and bank overdrafts. However, focus of this report is not on the majority of small firms but on those that do use external capital to survive, grow and employ, with a special focus on the characteristics of those that make use of asset finance, such as hire-purchase and leasing.

This supplement, based on the findings from the fourth Quarter 2008 of the Quarterly Survey of Small Business in Britain was sponsored by the  Finance and Leasing Association (FLA).

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