ING has decided to close Surrey-based ING Lease UK, which has been injecting £1bn per year into the British economy.
With the current economic climate, businesses have been turning to leasing contract for vehicle purchases, as banks have tightened up their risk appetite. The closing of ING Lease UK will instantly remove 40% of this money!
This withdrawal from leasing shows how European Banks are being urged to slash certain activities in order to fulfill new rules forcing Banks to hold more capital in reserve.
This year, 31% of all investment in new equipment and machinery has been done through leasing arrangements – the closure of ING is likely to cause disruption for several months!
However, ING specialized in leasing equipment to small businesses and farms, so it is these customers that are likely to feel the brunt of the disruption in accessing this type of finance.