By Andrew Hewitt of the Bank's Domestic Finance Division.
Asset finance, in its various forms, is widely used in the United Kingdom. Indeed, one survey has shown it is the largest type of funding for almost a quarter of those small and medium-sized enterprises (SMEs) that use external finance. Some forms of asset finance have grown rapidly in recent years, while others have not; and some new asset finance products have been brought in from the United States. This article provides an overview of asset finance from a UK perspective.