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Asset finance market reports further growth

10 June 2016

New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 2% in April, compared with the same month last year. In the first four months of 2016, new business was 6% higher than in the same period in 2015.

The business equipment finance sector reported new business up by 5% in April compared with the same month in 2015, while commercial vehicle finance grew by 3% over the same period.

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

“The asset finance market reported its thirty-first consecutive month of new business growth in April, with a particularly strong performance by the broker channel. The solid performance by the industry so far in 2016 meant that that the percentage of UK investment in machinery, equipment and purchased software funded by it increased to 31.8% in the twelve months to March 2016.”

Apr

2016

% change on prev. year

3 months to Apr 2016

% change on prev. year

12 months to Apr 2016

% change on prev. year

Total FLA asset finance (£m)

2,592

+2

8,048

+7

29,716

+8

Total excluding high value (£m)

2,588

+4

7,670

+7

28,628

+8

Data Extracts:

 

By asset:

Plant and machinery finance (£m)

469

-5

1,540

+1

5,802

+3

Commercial vehicle finance (£m)

609

+3

1,892

+7

7,042

+12

IT equipment finance (£m)

138

+1

518

+1

2,252

+22

Business equipment finance (£m)

197

+5

595

+9

2,102

-6

Car finance (£m)

897

0

2,523

+7

9,122

+7

Aircraft, ships and rolling stock finance (£m)

60

+51

90

-61

435

-7

 

By channel:

Direct finance (£m)

1,385

+3

3,871

+6

14,424

+9

Broker-introduced finance (£m)

457

+18

1,363

+13

5,147

+8

Sales finance (£m)

747

0

2,436

+5

9,056

+7

 

By product:

Finance leasing (£m)

289

+32

891

+4

3,765

+5

Operating leasing (£m)

605

+16

1,838

+6

6,791

+9

Lease/Hire purchase (£m)

1,386

-4

4,113

+2

15,162

+7

Other finance (£m)

312

-13

1,205

+37

3,997

+13

 

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.