grenke's New Lease of Life Report findings from over 500 UK SME interviews highlighted that 86% of SMEs want to thrive, not just survive, yet many are held back by outdated equipment and limited financing awareness.

As part of our Report Campaign, grenke host regional round table discussions with our equipment resellers to gain invaluable insights into local market dynamics and challenges, helping us better understand how our research findings, translating them into real-world business environments and enabling us to enhance our service offering across the UK.

Continuing our series of regional discussions exploring these findings, grenke recently hosted its fourth roundtable event at The Merchant Hotel in Belfast. The event was hosted by UK Managing Director of Sales David Horton and Belfast Branch Leader Aiden Spencer. They were joined by business leaders representing key sectors across Northern Ireland's equipment dealer and broker community.

How does Northern Ireland's unique business environment affect attitudes toward leasing and equipment financing, and what specific regional opportunities and challenges exist for growing SME adoption of leasing solutions?

The Economic Landscape in Northern Ireland

David Horton opened the discussion by highlighting findings from grenke’s New Lease of Life report, particularly that while 86% of SMEs want to thrive rather than just survive, many are operating with sub-optimal equipment that impacts their growth potential. "Our research shows that over half of equipment in SME businesses is currently sub-optimal, with 17% not working or no longer used. Although our survey did cover SMEs from Northern Ireland, the question is - how much of our report relevant in Northern Ireland, do you share the overall bias with other UK countries?"

Michael Burke, Managing Director of Burke Systems, started with his unique perspective on Northern Ireland's business confidence: "Business confidence is key - companies will invest when they feel confident about their projections, earnings capacity, and profitability. Right now, we're seeing significant uncertainty in certain sectors. Northern Ireland is unique - it can be easily affected. Belfast has its urban aspects, but go a mile outside and you're in the countryside. It's quite different from other UK regions."

This insight aligns with the report's findings that 70% cite unpredictable customer demand as key barriers to growth. The recent restoration of the Northern Ireland Assembly adds another layer of complexity to the business environment, as noted by several participants.

The SME Mind set

Norman McNellis, Commercial Director at Innovative Workplace Solutions, shared a crucial insight into the regional business psychology: "Someone once told me that while other UK countries gets dramatic highs and lows, Northern Ireland maintains a more steady state. We don't experience the extreme peaks and troughs. Most businesses here are SMEs, which makes us somewhat more immune to global economic swings."

This steadier approach aligns with the report's finding that 61% of UK SMEs consider themselves "stable but flexible" when it comes to financing approaches. However, in Northern Ireland, this conservative approach sometimes manifests as hesitancy toward new financing solutions.

Mark Johnston, Director of Johnston Financial Solutions, highlighted how perception affects business decisions “When people consume too much negative news media, it affects their decision-making. Last year, when Base Rate increased, I saw many clients stalling because media was saying interest rates were high, often delaying projects or even cancelling them despite the fact interest rates remained below historical averages. Better decision making in this regard will be supported by professional specialists such as Commercial Finance Brokers.

Evolving Business Models

The report revealed that 75% of businesses believe new assets and equipment would help re-energize their operations. Discussing this shift toward modernization, Oli Quantrill, Finance Director at Simplicity Group, observed: "The telecommunications side is almost 100% lease based. People are fundamentally used to a monthly amount for their telecom solutions. They're not used to the idea of buying the kit upfront. What's interesting is how this model is spreading to other sectors, driven by both technological advancement and changing customer expectations."

Cross-Border Considerations

A unique aspect of doing business in Northern Ireland is its position as the only UK region sharing a land border with an EU member state. This creates both challenges and opportunities for SMEs, particularly in terms of equipment financing and cross-border trade.

Ailsa McVicker of PC Finance emphasized the importance of clear communication in this complex environment: "When sending out a quotation, you've got to highlight that there will be a daily rental charge. Customers appreciate transparency from the start. The cross-border element means we need to be especially clear about terms and conditions."

The Power of Local Understanding

Michael Clarke, drawing on his extensive industry experience, shared how local knowledge shapes their approach: "As an SME, we totally understand the benefits of Leasing, and as such we lead with leasing in the majority of our sales cycles . After 26 years in business, we've found this approach works best for both us and our customers”.

This emphasis on local presence resonates with the report's finding that 81% of SMEs say they are keen to get back on track with their business over the next 12 months, but need trusted partners to help them achieve this.

Technology and Service

Addressing the role of technology and customer service, Aiden Spencer highlighted grenke’s commitment to the region: "We run a branch network where branch leads have autonomy. When any of our partners have had a challenge with any equipment financing, we make decisions and quickly because we have that local feel, even though we're a big corporate team."

This local autonomy is particularly important given that the report found 49% of SMEs say leasing is a difficult area to understand, with 27% not understanding the overall cost and impact to their business and 24% with lack of awareness of the possibilities of leasing.

Our Key Learnings

The Belfast Roundtable highlighted Northern Ireland's unique position in the UK leasing landscape. While the New Lease of Life report shows that 66% of UK SMEs see leasing as the smart choice in today's economy, the discussion revealed how regional factors influence adoption rates and business confidence. The focus on relationship-building, local presence, and understanding of regional business culture emerged as key factors in growing leasing adoption across Northern Ireland.