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Asset finance market up by 8% in July

7 September 2018

New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) overall grew in July by 8% compared with the same month last year. New business for deals of up to £20 million increased by 10% over the same period.

The IT equipment finance and commercial vehicle finance sectors reported new business up in July by 60% and 15% respectively, compared with the same month in 2017, while plant and machinery finance and business equipment finance saw modest growth of 1% and 4% over the same period.

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

“The asset finance market rebounded in July despite subdued business investment as a result of Brexit-related uncertainty. 

“Key sectors of the economy are using leasing and hire purchase to finance investment in equipment, with particularly strong growth in new finance provided for construction and agricultural equipment, up by 31% and 14% respectively, compared with July 2017.”

 

Jul 2018

% change on prev. year

3 months to Jul

2018

% change on prev. year

12 months to Jul

2018

% change on prev. year

Total FLA asset finance (£m)

2,837

+8

8,811

+5

32,056

+2

Total excluding high value (£m)

2,665

+10

8,181

+3

30,265

+3

       

Data Extracts:

 

By asset:

      

Plant and machinery finance (£m)

559

+1

1,780

-4

6,551

+1

Commercial vehicle finance (£m)

628

+15

2,018

+9

7,655

+2

IT equipment finance (£m)

276

+60

773

+29

2,513

+11

Business equipment finance (£m)

231

+4

694

-6

2,575

+2

Car finance (£m)

860

-2

2,554

-2

9,339

0

Aircraft, ships and rolling stock finance (£m)

31

+352

86

-29

254

-60

 

By channel:

      

Direct finance (£m)

1,359

+6

4,120

+1

14,999

-1

Broker-introduced finance (£m)

530

+22

1,581

+12

6,000

+10

Sales finance (£m)

776

+9

2,480

+2

9,267

+3

 

By product:

      

Finance leasing (£m)

303

-6

990

-2

3,859

+2

Operating leasing (£m)

530

+5

1,528

-10

6,245

-8

Lease/Hire purchase (£m)

1,564

+8

4,911

+9

17,489

+5

Other finance (£m)

354

+53

988

+6

3,175

-6

 Note to editors:

  1. In 2017, FLA members provided £128 billion of new finance to UK businesses and households. £32 billion of finance was provided to businesses and the public sector. FLA members financed a third of UK investment in machinery, equipment and purchased software in the UK in 2017.
  2. For media enquiries, please contact the FLA press office on 020 7420 9656.