Finance & Leasing Association5 November 2021
New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew by 6% in September 2021 compared with the same month in 2020. In the nine months to September 2021, new business was 20% higher than in the same period in 2020.
The plant and machinery finance and business equipment finance sectors reported new business up in September by 31% and 21% respectively, compared with the same month in 2020. By contrast, IT equipment finance new business fell by 24% over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The asset finance market continued to grow in September supporting businesses of all sizes recover from the pandemic – new lending to SMEs alone grew by 13% compared with September 2020.
“Our latest research suggests that the industry has maintained its optimism about the opportunities for growth despite the risks to the economic recovery from supply chain disruption, higher inflation and further waves of Covid-19. The FLA’s Q4 2021 industry outlook survey shows that 90% of asset finance providers expected new business growth over the next twelve months.
“The industry has a key role to play in delivering net zero targets by helping businesses invest in assets that use greener and more efficient technologies. We have recommended that the Government create a Green Finance Wholesale Guarantee scheme that would significantly scale-up the level of green lending over the next few years.”
| Sep 2021 |
% change on prev. year |
3 months to Sep 2021 |
% change on prev. year |
12 months to Sep 2021 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
2,828 |
6 |
7,634 |
5 |
31,421 |
11 |
| Total excluding high value (£m) |
2,637 |
3 |
7,152 |
5 |
29,425 |
11 |
|
|
|
|
|
|
|
|
| Data Extracts:
By asset: |
|
|
|
|
|
|
| Plant and machinery finance (£m) |
648 |
31 |
1,861 |
18 |
7,044 |
15 |
| Commercial vehicle finance (£m) |
707 |
-3 |
2,054 |
8 |
8,391 |
19 |
| IT equipment finance (£m) |
166 |
-24 |
432 |
-34 |
1,970 |
-27 |
| Business equipment finance (£m) |
209 |
21 |
522 |
25 |
1,893 |
1 |
| Car finance (£m) |
824 |
2 |
2,058 |
2 |
8,605 |
15 |
| Aircraft, ships and rolling stock finance (£m) |
14 |
-50 |
67 |
-39 |
334 |
-20 |
|
By channel: |
|
|
|
|
|
|
| Direct finance (£m) |
1,085 |
-6 |
2,962 |
-5 |
12,936 |
1 |
| Broker-introduced finance (£m) |
616 |
18 |
1,710 |
19 |
6,729 |
21 |
| Sales finance (£m) |
937 |
6 |
2,480 |
10 |
9,760 |
21 |
|
By product: |
|
|
|
|
|
|
| Finance leasing (£m) |
268 |
-23 |
754 |
-18 |
3,392 |
-5 |
| Operating leasing (£m) |
653 |
22 |
1,568 |
9 |
6,250 |
13 |
| Lease/Hire purchase (£m) |
1,501 |
5 |
4,223 |
14 |
17,169 |
16 |
| Other finance (£m) |
289 |
-3 |
785 |
-26 |
3,343 |
-5 |
Note to editors:
- In 2020, FLA members provided £113 billion of new finance to UK businesses and households. £27 billion of finance was provided to businesses and the public sector. FLA members financed almost a third of UK investment in machinery, equipment and purchased software in the UK in 2020.
- Further details about the Green Finance Wholesale Guarantee may be found in the FLA’s manifesto “Making Green Finance Mainstream”.
- The FLA Q4 2021 Industry Outlook Survey results may be found here.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
