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FLA survey shows likely continued growth in business use of asset finance
UK businesses are increasingly turning to asset finance when investing in new equipment. A new quarterly confidence survey, published by the FLA for the first time today, shows that finance company chiefs expect this trend to continue. 78% of respondents expect broker-introduced asset finance to grow over the next three months, and 75% expect equipment dealer and distributor finance to do the same.
The asset finance industry plays a vital role in the UK economy, by providing £20 billion of finance to UK businesses each year to support investment and help businesses grow. The new quarterly survey asks senior finance industry executives for their views on the prospects for the UK economy and the asset finance industry. Other survey findings include:
- 21% of respondents think asset finance market conditions will improve over the next three months; 76% think they will stay the same; and only 3% expect conditions to worsen.
- 42% expect SME use of asset finance will grow over the next three months, while 58% think it will remain steady.
Geraldine Kilkelly, Head of Research and Chief Economist at the Finance & Leasing Association, commented:
“The quarterly confidence survey will help us assess trends both in the asset finance market and in the UK economy more widely. We are already seeing a recovery in SME investment via asset finance, including for commercial vehicles, IT and other important business equipment. The survey shows that many of our members expect to see further growth over the next quarter.”
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Note to editors:
In 2010 FLA members provided £69.8 billion of new finance to UK businesses and households. £19.6 billion of finance was provided to businesses and the public sector, representing around a quarter of all fixed capital investment (excluding real property and own-account software) in the UK last year. £50.2 billion was in the form of consumer credit, representing a third of all unsecured lending in the UK. And £18.4 billion supported the purchase of more than half of private new car registrations in the UK.
For further media information, please contact:
Russell Hamblin-Boone, FLA
T: 020 7420 9656 E: russell.hamblin-boone@fla.org.ukM: 07810 374110
Helen Saxon, FLA
T: 020 7420 9664 E: helen.saxon@fla.org.uk M: 07918 766 993