New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) fell by 16% in January 2021 compared with the same month in 2020. 

The plant and machinery finance sector reported a fall in new business of 3% in January compared with the same month in 2020.  The IT equipment finance and business equipment finance sectors reported falls in new business of 32% and 30% respectively, over the same period.

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

“The asset finance market provided more than £2.1 billion of new finance to businesses in January despite the ongoing restrictions in response to the Covid-19 pandemic.  Several sectors – agriculture, printing equipment, machine tools – reported higher levels of new business than in January 2020.

“If the UK economy is going to improve its long-term growth potential, there needs to be a significant increase in investment by businesses that enhances productivity and builds a sustainable future.  With as much as 40% of equipment investment funded by FLA members, the asset finance market will play a vital role in helping businesses achieve these goals.”

 Note to editors:

1. In 2020, FLA members provided £113 billion of new finance to UK businesses and households.  £27 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 2020.
2. For media enquiries, please contact the FLA press office on 020 7420 9656.