Asset Finance


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Asset finance market records 36th consecutive month of growth

11 November 2016

New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 12% in September, compared with the same month last year – the thirty-sixth consecutive month of growth. In Q3 2016, new business was also up by 12% compared with the same quarter in 2015.

The commercial vehicle finance and business equipment finance sectors reported new business up in September by 5% and 29% respectively, while plant and machinery finance new business increased by 16% over the same period.

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

“The first post-EU referendum quarterly results saw the asset finance market record its strongest rate of new business growth for more than a year.

“Encouragingly, September saw the second consecutive month of growth in new finance provided for plant and machinery. In the third quarter as a whole, new finance for agricultural equipment and construction equipment grew by 16% and 4% respectively, compared with Q3 2015.”

Sep

2016

% change on prev. year

3 months to Sep 2016

% change on prev. year

12 months to Sep 2016

% change on prev. year

Total FLA asset finance (£m)

2,933

+12

7,746

+12

30,240

+8

Total excluding high value (£m)

2,796

+10

7,218

+7

28,820

+7

Data Extracts:

 

By asset:

Plant and machinery finance (£m)

537

+16

1,494

+6

5,864

+2

Commercial vehicle finance (£m)

700

+5

1,795

+9

7,359

+12

IT equipment finance (£m)

223

+2

580

-4

2,277

+4

Business equipment finance (£m)

221

+29

614

+19

2,320

+10

Car finance (£m)

961

+10

2,336

+8

9,267

+5

Aircraft, ships and rolling stock finance (£m)

16

-67

149

+51

512

+4

 

By channel:

Direct finance (£m)

1,326

+13

3,670

+12

14,834

+9

Broker-introduced finance (£m)

523

+28

1,346

+17

5,034

+10

Sales finance (£m)

946

0

2,203

-4

8,952

+2

 

By product:

Finance leasing (£m)

332

+15

897

+10

3,923

+12

Operating leasing (£m)

733

+10

1,752

+5

6,974

+7

Lease/Hire purchase (£m)

1,459

+1

3,955

+5

15,503

+5

Other finance (£m)

408

+85

1,142

+77

3,841

+21

Note to editors:

  1. In 2015, FLA members provided £110 billion of new finance to UK businesses and households. £29 billion of finance was provided to businesses and the public sector.  FLA members financed almost 32% of UK investment in machinery, equipment and purchased software in the UK in 2015.