Asset Finance


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Asset finance market up 5% in April

9 June 2017

New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 5% in April, compared with the same month last year.

The plant and machinery finance sector reported new business up in April by 9%, while new finance for business cars grew by 8% over the same period.

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

“Asset finance new business increased by 8% in the first four months of 2017, in line with our expectations of single-digit growth for the year overall.

“The plant and machinery finance sector returned another strong performance in April, with new finance for agricultural equipment and construction equipment up by 17% and 8% respectively.”

Apr 2017

% change on prev. year

3 months to Apr

2017

% change on prev. year

12 months to Apr

2017

% change on prev. year

Total FLA asset finance (£m)

2,677

+5

8,359

+6

30,952

+6

Total excluding high value (£m)

2,486

-3

8,006

+6

29,624

+6

Data Extracts:

 

By asset:

Plant and machinery finance (£m)

511

+9

1,734

+13

6,161

+6

Commercial vehicle finance (£m)

577

-6

1,962

+4

7,437

+6

IT equipment finance (£m)

122

-12

483

-8

2,222

-3

Business equipment finance (£m)

177

-10

619

+4

2,472

+18

Car finance (£m)

974

+8

2,696

+7

9,485

+4

Aircraft, ships and rolling stock finance (£m)

174

+192

310

+243

662

+52

 

By channel:

Direct finance (£m)

1,329

-4

4,055

+6

15,107

+5

Broker-introduced finance (£m)

431

0

1,473

+17

5,440

+14

Sales finance (£m)

726

-2

2,478

+2

9,077

+1

 

By product:

Finance leasing (£m)

297

-7

943

-4

3,986

-1

Operating leasing (£m)

707

+23

2,047

+17

6,923

+6

Lease/Hire purchase (£m)

1,410

+2

4,395

+9

16,084

+8

Other finance (£m)

262

-8

973

-14

3,960

+7

Note to editors:

  1. In 2016, FLA members provided £118 billion of new finance to UK businesses and households. £30 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 2016.
  2. For media enquiries, please contact the FLA press office on 020 7420 9656.