New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) fell by 14% in October 2020 compared with the same month in 2019.  In the ten months to October 2020, new business was 26% lower than in the same period in 2019.

The commercial vehicle finance sector reported a fall in new business of 6% in October 2020 compared with the same month in 2019.  Over the same period, the IT equipment finance and plant and machinery finance sectors reported falls in new business of 31% and 20% respectively.

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

“Increased business uncertainty from the introduction of new restrictions to tackle rising coronavirus cases and the lack of a free trade agreement with the EU has weighed on business investment and demand for asset finance.  The FLA’s latest data shows that asset finance new business was 26% lower in the ten months to October 2020 than in the same period in 2019.

 “The outlook for the UK economy has improved with the promised rollout of a vaccine before Christmas.  The asset finance industry is in an ideal position to support businesses as they make the investment needed to increase productivity and build a sustainable future post-crisis. We urge the Government and Bank of England to ensure a level playing field so that non-banks can continue to lend to those businesses that will drive change.”

 Note to editors:

1. In 2019, FLA members provided £140 billion of new finance to UK businesses and households.  £36 billion of finance was provided to businesses and the public sector. FLA members financed more than a third of UK investment in machinery, equipment and purchased software in the UK in 2019.
2. For media enquiries, please contact the FLA press office on 020 7420 9656.