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Asset finance market grows at its strongest rate for at least 7 years

5 February 2015

Figures released today by the Finance & Leasing Association (FLA) show growth in asset finance new business of 13% during 2014 to £25.4 billion, the strongest annual rate of growth since the onset of the financial crisis.

Plant and machinery finance grew by 48% in December, IT equipment finance by 10% and business equipment finance by 6%. In 2014 as a whole, plant and machinery finance was up by 21%, business new car finance by 17%, business equipment finance by 13% and IT equipment finance by 5%.

 Commenting on the figures, Geraldine Kilkelly, FLA’s Head of Research and Chief Economist, said:

“The figures show a strong recovery in the asset finance market in 2014. Businesses were keen to use leasing and hire purchase to invest in a wide range of assets, with particularly strong growth in new finance for production plant, agricultural equipment and construction equipment.

The core market of deals of up to £20 million wrote new business of £24.6 billion in 2014, and is on target to surpass its pre-crisis peak in 2015.”

 

Dec 2014

% change on prev. year

3 months to Dec 2014

% change on prev. year

12 months to Dec 2014

% change on prev. year

Total FLA asset finance (£m)

2,502

+13

6,872

+12

25,373

+13

Total excluding high value (£m)

2,326

+6

6,567

+12

24,562

+13

Data Extracts:

Plant and machinery finance (£m)

571

+48

1,395

+24

5,400

+21

Commercial vehicle finance (£m)

505

-19

1,587

+2

5,830

+12

IT equipment finance (£m)

282

+10

570

+25

1,624

+5

Business equipment finance (£m)

193

+6

564

+16

2,185

+13

Car finance (£m)

632

+11

1,972

+15

7,640

+13

Aircraft, ships and rolling stock finance (£m)

32

-2

108

-3

263

-14

 

Note to editors:

  1. In 2014, FLA members provided £99.5 billion of new finance to UK businesses, the public sector and households. £25.4 billion of finance was provided to businesses and the public sector. FLA members financed almost 27% of UK investment in machinery, equipment and purchase software in the UK last year.