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Business investment boosted by asset finance
New asset finance figures show that funding is getting to businesses that need to invest in new equipment. The latest new business figures from the Finance & Leasing Association are up 12% in April compared with April 2011.
Finance for plant and machinery and IT equipment showed strong growth in the last three months. This is consistent with the Office for National Statistics’ provisional business investment Q1 2012 results1, which showed growth in investment by the manufacturing and service sectors.
Over the past 12 months, FLA members have provided £2.3 billion more funding to businesses2, which is clear evidence that asset finance is helping business make the investment they need to prosper and grow.
Geraldine Kilkelly, Chief Economist and Head of Research at the Finance & Leasing Association, commented:
“Despite the challenges in some sectors, asset finance supports investment in new equipment. And our latest confidence survey shows that asset finance providers are optimistic that they will increase the amount of equipment finance over the next year.”
Table 1: Total asset finance business, and extracts of breakdown by asset class
|
| Apr 2012 | % change on Apr 2011 | 3 months to Apr 2012 | % change on prev. year | 12 months to Apr 2012 | % change on prev. year |
| Plant and machinery finance (£m) | 329 | +16 | 1,118 | +20 | 4,107 | +16 |
| Commercial vehicle finance (£m) | 348 | +9 | 1,260 | +13 | 4,562 | +19 |
| IT equipment finance (£m) | 98 | +40 | 313 | +31 | 1,218 | +14 |
| Business equipment finance (£m) | 119 | +1 | 514 | -2 | 2,027 | +7 |
| Car finance (£m) | 619 | +8 | 1,659 | +2 | 6,385 | +6 |
| Aircraft, ships and rolling stock finance (£m) | 26 | -32 | 105 | +7 | 521 | -34 |
| Total excl. high value (£m) | 1,646 | +13 | 5,250 | +11 | 20,351 | +13 |
| Total FLA asset finance (£m) | 1,674 | +12 | 5,472 | +8 | 21,432 | +3 |
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Note to editors:
1.The Office of National Statistics Provisional Business Investment Q1 2012 results can be found here
2. Asset finance excluding projects where the cost is more than £20 million.
3. In 2011, FLA members provided £72.9 billion of new finance to UK businesses and households. £20.8 billion of finance was provided to businesses and the public sector, representing around a quarter of all fixed capital investment (excluding real property and own-account software) in the UK last year.
For further media information, please contact:
Helen Saxon, FLA
T: 020 7420 9664 E: helen.saxon@fla.org.uk M: 07918 766 993