Asset finance companies will be key to the ambitions of world leaders who want to ‘build back better’ as part of the economic recovery from COVID-19, according to a report published today by the International Asset Finance Network.
The new report, produced in association with global asset finance software specialist Alfa, is called ‘Sustainability and Servitisation: Building a path to profit for green asset finance’ and reveals that asset finance companies have a vital role to play as they will provide the funding that will trigger growth, but the operating environment is changing when it comes to customers, markets and legislation.
Key issues include the need to offer customers flexibility in order to reduce their long-term commitments, improve efficiency to minimise the environmental impact of equipment finance and reduce waste by maximising the reuse of assets, either by operating them for longer or recycling them.
Experts interviewed by the IAFN for the report say this is an exciting time of change for the asset finance industry, where it will play a key role in reshaping and rebuilding industries and economies as they work towards recovery.
However, it also brings significant challenges as finance companies adapt to the changing economic landscape.
Issues covered in the report include:
- How the EU taxonomy provides guidance for green asset finance.
- Why a mindset change is needed for circular economy growth.
- What sustainable services mean for revenue recognition and residual values.
- The importance of data and good partnerships for servitisation success.
- Next steps for the industry to drive change.
Andy Denton, chief executive officer of Alfa, said: “As a leading global specialist in asset finance software solutions, we have set ambitious environmental targets for our business and we are determined to help the industry as a whole achieve its full potential for improving the planet.
“This report highlights some of the key discussions among asset finance industry leaders as they consider the types of funding and services that will be required to deliver lasting change.”
You can download the report by completing the form below