Asset Finance


Consumer Finance


Motor Finance


Steady growth in asset finance

10 March 2016

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 January compared with the same month last year – the twenty-eighth consecutive month of growth.

Commercial vehicle finance and car finance grew in January by 6% and 4% respectively, but plant and machinery finance fell by 7% over the same period.

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

“Growth continued in the asset finance market in January, albeit at a slower rate than we have seen in recent months. A 17% fall in construction plant finance contributed to the overall contraction in plant and machinery finance and mirrors trends in the wider construction sector.

“Asset finance continues to be an important source of finance for SMEs with the latest BDRC SME Finance Monitor showing a success rate of 94% for SMEs who applied for asset finance in 2015. More than £16 billion of asset finance new business went to support SME investment in machinery and equipment last year.”

Jan

2016

% change on prev. year

3 months to Jan 2016

% change on prev. year

12 months to Jan 2016

% change on prev. year

Total FLA asset finance (£m)

2,028

+3

7,287

+11

29,179

+11

Total excluding high value (£m)

1,971

+2

6,920

+11

28,145

+11

Data Extracts:

 

By asset:

Plant and machinery finance (£m)

357

-7

1,410

+5

5,787

+6

Commercial vehicle finance (£m)

488

+6

1,794

+23

6,911

+14

IT equipment finance (£m)

102

-1

588

+16

2,247

+36

Business equipment finance (£m)

151

-13

518

-8

2,052

-7

Car finance (£m)

599

+4

1,944

+6

8,956

+11

Aircraft, ships and rolling stock finance (£m)

52

+57

203

+60

576

+98

 

By channel:

Direct finance (£m)

1,080

+13

3,589

+15

14,222

+14

Broker-introduced finance (£m)

367

-8

1,246

+5

4,993

+7

Sales finance (£m)

525

-8

2,086

+7

8,930

+8

 

By product:

Finance leasing (£m)

238

-2

1,194

+29

3,727

+4

Operating leasing (£m)

465

+6

1,661

+14

6,685

+11

Lease/Hire purchase (£m)

1,001

+2

3,347

+7

15,095

+13

Other finance (£m)

325

+9

1,085

+3

3,673

+12

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.
  2. BDRC Continental is the UK’s largest independent research consultancy. Its SME Finance Monitor has been providing data on access to finance for SMEs since 2011.