Asset Finance


Consumer Finance


Motor Finance


Continued growth in asset finance in July

8 September 2016

New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 8% in July, compared with the same month last year.

New business reported by the business equipment finance and car finance sectors grew in July by 7% and 4% respectively, while new plant and machinery finance fell by 13% over the same period.

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

“The asset finance industry reported its 34th consecutive month of new business growth in July. The recent falls in plant and machinery finance reflect the wider economic pressures faced by the manufacturing and construction sectors in the months running up to July. Encouragingly, some recent survey indicators have suggested that the weaker pound is helping to boost exports which should in turn support manufacturers’ confidence to invest. The FLA’s Q3 2016 asset finance confidence survey shows the industry expects overall new business to be broadly stable over the next twelve months.”

Jul

2016

% change on prev. year

3 months to Jul 2016

% change on prev. year

12 months to Jul 2016

% change on prev. year

Total FLA asset finance (£m)

2,684

+8

7,795

+6

30,215

+7

Total excluding high value (£m)

2,365

-3

7,391

+3

28,873

+6

Data Extracts:

 

By asset:

Plant and machinery finance (£m)

455

-13

1,439

-6

5,709

0

Commercial vehicle finance (£m)

532

-2

1,777

+10

7,202

+12

IT equipment finance (£m)

177

-6

586

+1

2,290

+13

Business equipment finance (£m)

206

+7

640

+26

2,233

+3

Car finance (£m)

821

+4

2,411

0

9,128

+4

Aircraft, ships and rolling stock finance (£m)

104

+414

150

+273

545

+22

 

By channel:

Direct finance (£m)

1,277

+8

3,838

+8

14,705

+7

Broker-introduced finance (£m)

439

-3

1,386

+8

5,272

+8

Sales finance (£m)

650

-19

2,168

-7

8,895

+3

 

By product:

Finance leasing (£m)

289

-4

906

+6

3,833

+5

Operating leasing (£m)

530

-4

1,705

+5

6,865

+8

Lease/Hire purchase (£m)

1,320

+1

4,019

+4

15,327

+5

Other finance (£m)

545

+71

1,165

+20

4,190

+15

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.