Lease Group expects post-lockdown financing demand to increase

Financing models will be key for businesses to keep tech up-to-date, says MD James Phillips

Technology and equipment funder Lease Group expects increased demand for financing from businesses as the UK eases out of lockdown.

Managing director James Phillips said that Lease is anticipating the next 12 months to be the busiest in its trading history, having seen steady business during the past three months.

“We didn’t see a huge amount of let-off during lockdown. We were bringing in around four to six new partners a week,” he said.

“We’ve seen a lot of quotes for orders from businesses in acquisition mode in the past few weeks. There’s a number of businesses that are resting on their laurels, they’ll possibly struggle over the next 12 to 18 months.”

Phillips added that leasing will become important for cash-strapped businesses who want to keep their technology up-to-date without having the capital to acquire it upfront.

Lease Group services more than 750 suppliers across telecoms, IT, energy, AV and healthcare, as well as more than 2,000 customers. Phillips said the mobile technology side of the business performed solidly throughout lockdown.

“The beauty with telecoms equipment is it can be sent directly to the end user, as long as it’s not an office-based solution,” he said. “We’ve had to put a lot of deals on hold for office-based equipment such as AV systems.

“We’ve seen a lot of companies mobilise their teams, so any equipment that’s made to be moved around has been business as usual for us.”

In anticipation of continuing its growth, Lease are looking to hire account managers and support staff.

“We don’t want to be in a position where we get snowed under. For us to keep the same level of service our partners expect, we need to prepare ourselves.”