ING Lease (UK) closure announced

There had been rumours swirling in the market for a few days and this morning ING Lease (UK) finally confirmed the worst: they have decided to close their UK operation on November 30th so the group can focus on its core businesses. This is desperate news not just for the 300 or so employees that work for them but also for the UK asset finance market that now has a £1bn shaped holed to fill in their absence. What has caused this? It seems a number of factors have conspired together to precipitate this decision: the economic downturn continues to be more severe and longer than had been anticipated, the regulatory landscape has also been cited as not being conducive to business (Basel III in particular causing banks to reassess where their focus is placed) and ING Group has also determined that the ING Lease (UK) - though a major player and multiple award winner in this market - was not a key part of the Group's plans for its UK operations. The impact on British business and the economic climate from this further retraction of credit cannot be underestimated. Many brokers were so accustomed to using the ING systems to price deals of all sizes both quickly and conveniently that it became an integral part of their business. At a time when credit was already challenging to attain, especially following the departure of Lombard Vehicle Management from this market announced in February, this will make things even tougher. Competitors have already reacted with Aldermore, Conister Bank, Singers and Close Brothers saying they will continue to support this market but quite where they will find and extra £1bn to maintain the status quo remains to be seen. A more positive development has come from the cash-rich Funding Circle who have announced that they are lowering their minimum asset loan to just £20,000 to deal with some of the demand created by the departure of ING Lease UK. Funding Circle asset finance loans are available up to £500,000 and achieve a typical rate of 8.6%; of course they will also do unsecured business loans up to £100,000 too. For assistance with Asset finance or Leasing or to discuss a Funding Circle deal please either call us on 0845 1260350 or complete our Asset finance enquiry form here.