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Asset finance market records two years of consecutive monthly growth

5 November 2015

New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 3% in September compared with the same month last year – the twenty-fourth consecutive month of growth. New business for deals of up to £20 million grew by 8% in the same period, while total new business grew by 12% in the twelve months to September 2015.

IT equipment finance grew by 48% compared with September 2014, and commercial vehicle finance showed growth of 14% over the same period.

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

“The growth in the asset finance market over the last two years has helped more businesses fund investment in essential equipment that they need to expand. The latest official data suggests that FLA members’ funding of UK investment in machinery, equipment and software has increased from 28.1% to 32.0% in only two years.”

Sep

2015

% change on prev. year

3 months to Sep 2015

% change on prev. year

12 months to Sep 2015

% change on prev. year

Total FLA asset finance (£m)

2,678

+3

7,017

+3

28,381

+12

Total excluding high value (£m)

2,595

+8

6,840

+5

27,440

+12

Data Extracts:

 

By asset:

Plant and machinery finance (£m)

465

+3

1,410

+1

5,733

+11

Commercial vehicle finance (£m)

667

+14

1,647

+14

6,578

+10

IT equipment finance (£m)

218

+48

579

+55

2,155

+43

Business equipment finance (£m)

170

-26

513

-8

2,117

0

Car finance (£m)

873

+6

2,169

-2

8,793

+12

Aircraft, ships and rolling stock finance (£m)

50

+135

98

+81

491

+83

 

By channel:

Direct finance (£m)

1,192

+6

3,300

+1

13,717

+16

Broker-introduced finance (£m)

455

+6

1,243

+7

4,899

+9

Sales finance (£m)

948

+13

2,297

+11

8,823

+8

 

By product:

Finance leasing (£m)

290

-38

805

-13

3,476

-3

Operating leasing (£m)

669

+12

1,667

+13

6,505

+8

Lease/Hire purchase (£m)

1,440

+17

3,756

+7

14,804

+15

Other finance (£m)

279

-6

789

-12

3,597

+23

Note to editors:

  1. In 2014, FLA members provided £100 billion of new finance to UK businesses and households. £26 billion of finance was provided to businesses and the public sector. FLA members financed more than 30% of UK investment in machinery, equipment and purchased software in the UK last year.