Asset Finance


Consumer Finance


Motor Finance


Continued growth in asset finance

10 December 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 October, the twenty-fifth consecutive month of growth.

IT equipment finance grew by 2% in October compared with the same month last year, while finance for commercial vehicles and plant and machinery both grew by 1% over the same period.

The asset finance industry financed 32.4% of all UK investment in machinery, equipment and purchased software in the twelve months to September 2015 – its highest level for more than six years.

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

“October saw continued growth across most of the main asset finance sectors, although the slowdown in emerging markets in recent months and falls in commodity prices have hit demand for construction and agricultural equipment finance. The FLA’s Q4 2015 Asset Finance Confidence Survey shows that the industry expects new business to grow by up to 10% in 2016.”

Oct

2015

% change on prev. year

3 months to Oct 2015

% change on prev. year

12 months to Oct 2015

% change on prev. year

Total FLA asset finance (£m)

2,513

+3

7,074

+4

28,464

+11

Total excluding high value (£m)

2,448

+2

6,880

+4

27,484

+10

Data Extracts:

 

By asset:

Plant and machinery finance (£m)

439

+1

1,324

+1

5,736

+11

Commercial vehicle finance (£m)

641

+1

1,747

+9

6,585

+7

IT equipment finance (£m)

170

+2

585

+39

2,158

+38

Business equipment finance (£m)

159

-12

479

-13

2,096

-2

Car finance (£m)

864

+6

2,240

+1

8,838

+11

Aircraft, ships and rolling stock finance (£m)

24

+63

102

+109

500

+78

 

By channel:

Direct finance (£m)

1,286

+4

3,424

+3

13,772

+14

Broker-introduced finance (£m)

463

+5

1,259

+5

4,923

+8

Sales finance (£m)

699

-5

2,197

+5

8,788

+6

 

By product:

Finance leasing (£m)

312

-7

830

-19

3,452

0

Operating leasing (£m)

547

-5

1,661

+6

6,478

+7

Lease/Hire purchase (£m)

1,387

+7

3,849

+10

14,896

+14

Other finance (£m)

266

+18

735

0

3,638

+24

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.