BOS rolls out asset finance fund

Bank of Scotland has pushed the button on a £500 million asset finance fund as it attempts to drive up business productivity levels through investment in technology and equipment.

The Uk-wide pool of cash aims to support sectors where high-spec machinery and innovations such as automation can help businesses boost productivity and grow in a competitive marketplace.

Firms will be able to use asset finance to gain quick access to the funds they need to buy equipment without hitting working capital. The bank said its research had found inadequate investment was one of the key obstacles preventing businesses from improving productivity.

Gordon Ferguson, director and head of hire purchase and leasing at Bank of Scotland Commercial Banking, said: “The pace of technological change is constantly challenging important UK sectors to invest in growth to remain competitive. But businesses need to be able to achieve this without damaging their access to working capital.

“This fund will enable more and more businesses to benefit from the flexibility of asset finance, which can be used to support firms’ needs throughouttheeconomiccycle,whether that’s investing in growth or boosting efficiency.”

Fraser Sime, regional director, Bank of Scotland Commercial Banking, said: “The UK’S low level of productivity compared with its G7 peers remains a challenge, and it’s crucial we work closely with businesses to ensure they have the tools they need to make efficiencies and grow.”

While asset financing has become increasingly popular, some experts have pointed out that it can sometimes work out more expensive than buying the asset outright.