Wraith-Carter inherited several experienced senior staff who had moved across from ING Lease when that company decreased its UK presence.

“At the time,” he said, “we set a target of growing the business by five times over the next five years – and we are on target to achieve that.”

Hitachi Capital Business Finance lends across a wide variety of asset sectors ranging from invoice and block discounting to yellow goods, commercial vehicles and, of course, vendor programmes including goods manufactured by its parent Hitachi.

Most business is sourced from intermediaries - as one would suspect with such a strong streak of ex-ING Lease expertise on the team. Indeed, Wraith-Carter, a qualified accountant, headed ING Lease’s Risk & Compliance section for over seven years.

Hitachi Capital’s commitment to UK intermediaries was highlighted last year with the company’s hosting of a series of seminars introducing the Financial Conduct Authority’s (FCA) required guidelines and providing practical guidance and support on how to meet the ongoing FCA obligations.

Wraith-Carter told Asset Finance International: “We are delighted with the success of the broker compliance services programme to date, and that it has helped so many brokers with their FCA approval. It is important for us that our support is ongoing even when approval has been reached, especially as the process is so new and we don’t have historical examples of good practice. Our aim is that our follow-up seminars will show brokers the importance of keeping up with the sector and working to the highest professional standards.”

Enter The Cloud

In addition to compliance seminars Hitachi Capital has launched a new service, The Cloud, on a free-of-charge basis to Hitachi Capital-appointed brokers. The aim is to provide a support package to intermediaries that will complement the day-to-day operations of running their business – downloaded as and when they need it.

Wraith-Carter explained that the service, which is available from Hitachi Capital’s dedicated broker portal, includes: a virtual switchboard with discounted access to a professional receptionist to take calls and relay messages; enhanced listing on the Asset Finance 500 website; a public relations guide on how to engage brokers’ business with the local press, including access to press release templates and market research that can be tailored to the business; and a dedicated email address for unlimited balloon CAP enquiries – amongst a host of other benefits.

“We are always looking at innovative ways in which we can further strengthen the relationship that we have with our brokers, and especially supporting them to provide a source of alternative funding to the big banks,” Wraith-Carter added.

One of Hitachi Capital’s methods of maintaining close links with its customers, and the small business community specifically is its regular canvassing of the market for production of its British Business Barometer. It’s most recent research indicates that, notwithstanding wider concerns caused by the global economy and the forthcoming European Union referendum, it is issues closer to home and in their offices that are keeping SME owners awake at night.

Single biggest worry

Last month’s Barometer revealed that business retention is the single biggest worry for over one in three SMEs (33%). Wraith-Carter explained that this has increased by 10% compared with six months previously (23%) and 8% on the same period 12 months ago (25%). As a principal concern, business retention is followed by worries around managing cash flow (30%), red tape (29%), compliance and regulation (26%), and market volatility (25%).

With its finger firmly on the pulse of asset sectors in the UK, the Barometer also revealed that the impact of recent extreme weather in the UK on their business is the biggest concern for SMEs in the agriculture sector (40%) - significantly higher than the same period a year ago (29%).

For those SME’s in the construction sector, economic volatility is the top concern (21%), and is significantly higher when compared with 12 months ago (15%). For these companies red tape (33%) and concerns around business retention are also on the increase (27%, compared with 16% in both Q1 and Q3 2015).

For those operating precariously in the UK manufacturing industry, managing cash flow is still the biggest concern in the sector (36%). Employee skill gaps and shortages is also still a major concern for the sector (27%), having increased significantly from 12 and 6 months ago (13% Q1 2015, 12% Q3 2015).

Wraith-Carter stressed: “Companies in the UK have a remarkable talent of putting a brave face on things and weathering the storm. However, while business owners are very adept at dealing with these issues, there is more than we can do as an industry to help SMEs so that they can spend their time focusing on the rewarding aspects of running a business.

“We can work with our introducers to offer solutions that can help navigate the challenges of being a SME owner with the hope of taking some of their ‘worries’ away”.

EU referendum looms

Looking ahead, a growing concern for UK businesses is the possible effect of a decision by the British electorate to leave the EU in the forthcoming referendum. Wraith-Carter believes that the effect will be mixed, even within sectors, some positive, some negative, but it will not be clear what the effects will be until the detailed terms of exit and the implications for each industry segment gradually become evident.

“It is likely,” he added, “that certainty would only return slowly after an exit vote. For there are broader considerations to take into account -  such as what if Scotland votes to stay in the EU but England votes to leave – which swings the overall outcome?”

Last autumn the British Business Bank agreed to provide a £100 million facility to Hitachi Capital UK to fund a portfolio of newly-originated small business asset finance receivables. The transaction was the first of the Bank’s innovative new ENABLE Funding programme which set out to increase significantly the supply of leasing and asset finance to smaller businesses in the UK.

Wraith-Carter said: “Being the first funder to take part in an ENABLE Funding programme transaction re-enforces our commitment to understanding the specific needs of SMEs and offering tailored financial solutions that fit their business requirements. This initiative is a fantastic example of how Hitachi Capital looks at new and fresh ways to generate increased use of alternative lending to UK SMEs.”

Looking ahead Wraith-Carter is full of optimism as Hitachi Capital explores and achieves new initiatives. One such was the company’s Consumer Division’s recent partnership with Amazon whereby the latter offers loans to customers buying products totalling over £400 off its website - in a move that may shake up the UK furniture and electricals market. The UK is thought to be the first country in the world where Amazon has offered instalment loans though shoppers in the US are able to buy on credit using an Amazon store card.