Our New Lease of Life Report reveals that this hesitancy is costing businesses more than they realise—both in financial flexibility and long-term growth opportunities.

 

The Leasing Hesitation: What’s Holding SMEs Back?


Leasing has evolved significantly in recent years, yet many SMEs remain cautious. Common misconceptions include:

  • “Leasing is more expensive than buying” – While upfront purchases may seem cost-effective, they tie up cash flow and leave businesses vulnerable to outdated equipment.

  • “It’s complicated” – Modern leasing agreements are straightforward, transparent, and designed to be SME-friendly.

  • “I won’t own the asset” – Ownership comes with maintenance costs and depreciation, while leasing ensures businesses always have the latest equipment without the financial burden.

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What the Data Says
Our Lease of Life Report highlights key statistics on SME leasing behaviour:

  • 86% of SMEs say they want to thrive as a business, not just survive.

  • 70% agree that leasing would help them unlock growth opportunities.

  • 75% say new assets and equipment would re-energise their business and support future growth plans.

  • 44% of SMEs currently lease some equipment, but 60% believe there are still “lots of myths and misconceptions” around leasing.

 

The Real Cost of Leasing Hesitancy


By avoiding leasing, SMEs may be limiting their own growth potential. Here’s how:

  • Tied-up capital – 69% of SMEs say access to finance is a key challenge. By purchasing equipment outright, businesses tie up cash that could be used for hiring staff, investing in marketing, or expanding into new markets.

  • Outdated equipment – More than half (53%) of SME equipment is sub-optimal. This includes 17% that doesn’t work or is no longer used and 36% that is adequate but not optimal. Operating with outdated equipment reduces efficiency, productivity, and competitiveness.

  • Missed growth opportunities – 87% of SMEs report that at least one business area has stagnated due to a lack of investment. This includes hiring staff (33%), expanding into new markets (29%), marketing (28%), investment in training (25%), and launching new products or services (22%).

  • Employee satisfaction and performance – 81% of SMEs agree that employees feel better and do better at work when they have the best equipment. Leasing enables SMEs to provide high-quality, up-to-date technology, which boosts morale and productivity.

  • Operational inflexibility – The ability to scale quickly is crucial in today’s fast-changing economy. Leasing allows businesses to upgrade and adapt as needed, without the financial risk of ownership.

 

Leasing: The Smart SME Choice


Leasing isn’t just an alternative to buying; it’s a smarter financial strategy. Just like your Spotify subscription gives you access to all your favourite music without a huge upfront cost, leasing gives SMEs access to the tools they need to grow—without the financial strain of outright ownership.

Two-thirds of SMEs (66%) already recognise leasing as the smart choice in today’s economy. However, misconceptions still exist. To move beyond hesitation, SMEs need more awareness, education, and support in understanding the advantages of leasing.

 

Final Thoughts


The UK SME landscape is evolving, and businesses that embrace leasing are better positioned for success. It’s time to move past outdated misconceptions and recognise leasing as a strategic advantage rather than a last resort.

At grenke, we’re here to help SMEs rethink growth, unlock new opportunities, and build businesses that thrive. Let’s start the conversation today.