19 March 2013
Following 5% growth in core asset finance new business during January 2013, the latest asset finance confidence survey from the Finance and Leasing Association (FLA), carried out during Q1 of 2013, shows that new business is expected to increase by more than 10% in the direct finance channel during the next twelve months.
The survey, based on responses from 33 member companies which account for 73% of new business written in 2012, also suggests that the vast majority (96%) expect to see an increase in lending to small and medium sized enterprises.
Commenting on the figures, Julian Rose, Head of Asset Finance at the Finance and Leasing Association, said: “The Government’s Business Bank – more details of which are expected to be announced by the Chancellor this week – is focused on getting finance to growing small businesses. This survey confirms that the asset finance market is a well-established means of providing what these businesses need. “It will make sense for the Business Bank to build on that by working through bank and non-bank asset finance companies.”
Notes to Editors
- The FLA quarterly asset finance confidence survey aims to gauge senior executives’ opinions about the outlook for the UK economy and the asset finance industry. All FLA asset senior executives were invited to take part in the survey.
- Members can access the survey at http://www.fla.org.uk/research/AFC
- Asset finance new business provided through leasing and hire purchase excluding high value finance where the project cost is £20 million or more.
- In 2012 FLA members provided £76.3 billion of new finance to UK businesses and households. £21.4 billion of finance was provided to businesses and the public sector, representing around 28% of all fixed capital investment (excluding real property and own-account software) in the UK last year.