Asset Finance


Consumer Finance


Motor Finance


Asset finance up 16% in May

7 July 2017

New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew in May by 16% compared with the same month last year.

The plant and machinery finance and business equipment finance sectors reported new business up in May by 28% and 31% respectively, compared with the same month in 2016, while new finance for commercial vehicles was up by 3% over the same period.

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

“Asset finance new business grew by 9% in the first five months of 2017, as the industry continued to help businesses invest.

“The growth in plant and machinery finance new business so far in 2017 has been broad-based, with increases in new finance provided for construction equipment, agricultural equipment, forklift trucks, and production and process plant over that period.”

May 2017

% change on prev. year

3 months to May

2017

% change on prev. year

12 months to May

2017

% change on prev. year

Total FLA asset finance (£m)

2,676

+16

8,890

+8

31,321

+7

Total excluding high value (£m)

2,600

+15

8,538

+9

29,956

+6

Data Extracts:

 

By asset:

Plant and machinery finance (£m)

572

+28

1,796

+18

6,285

+9

Commercial vehicle finance (£m)

609

+3

2,051

+4

7,456

+4

IT equipment finance (£m)

175

-7

555

-6

2,208

-5

Business equipment finance (£m)

231

+31

638

+6

2,527

+18

Car finance (£m)

841

+15

2,981

+11

9,593

+6

Aircraft, ships and rolling stock finance (£m)

100

+222

327

+192

731

+62

 

By channel:

Direct finance (£m)

1,302

+10

4,303

+7

15,229

+5

Broker-introduced finance (£m)

527

+26

1,573

+19

5,550

+15

Sales finance (£m)

771

+15

2,662

+6

9,178

+2

 

By product:

Finance leasing (£m)

315

0

1,027

0

3,986

-3

Operating leasing (£m)

574

+8

2,153

+15

6,966

+6

Lease/Hire purchase (£m)

1,476

+19

4,706

+12

16,322

+9

Other finance (£m)

311

+39

1,004

-11

4,047

+11

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.