Asset finance market fell by 18% in August 2020

9 October 2020

New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) fell by 18% in August 2020 compared with the same month in 2019.  In the first eight months of 2020, new business decreased by 30% compared with the same period in 2019.

 The IT equipment finance sector reported growth in new business of 1% in August compared with the same month in 2019.  Over the same period, the commercial vehicle finance and plant and machinery finance sectors reported falls in new business of 21% and 17% respectively. 

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

 “In August, the asset finance market continued to report lower levels of new business year-on-year. There were pockets of growth reported by the IT equipment finance and manufacturing equipment finance sectors. 

 “The asset finance industry has a long tradition of supporting smaller businesses fund capital investment, with 60% of annual new business provided to SMEs.   To ensure these customers can continue to obtain the finance they need to innovate and grow, we urge the Government and Bank of England to support all lenders, including non-banks, by removing the obstacles that still exist around access to funding.” 

 

Aug 2020

% change on prev. year

3 months to Aug

2020

% change on prev. year

12 months to Aug

2020

% change on prev. year

Total FLA asset finance (£m)

2,071

-18

6,529

-28

28,565

-19

Total excluding high value (£m)

1,934

-19

6,022

-27

26,537

-19

 

 

 

 

 

 

 

Data Extracts:

 

By asset:

 

 

 

 

 

 

Plant and machinery finance (£m)

487

-17

1,512

-19

6,194

-16

Commercial vehicle finance (£m)

541

-21

1,650

-28

7,090

-24

IT equipment finance (£m)

170

1

662

-7

2,806

4

Business equipment finance (£m)

119

-43

354

-40

1,868

-22

Car finance (£m)

545

-13

1,655

-34

7,466

-25

Aircraft, ships and rolling stock finance (£m)

21

9

113

-42

408

-28

 

By channel:

 

 

 

 

 

 

Direct finance (£m)

898

-26

2,753

-35

12,910

-23

Broker-introduced finance (£m)

410

-21

1,292

-23

5,565

-17

Sales finance (£m)

625

-6

1,978

-15

8,063

-14

 

By product:

 

 

 

 

 

 

Finance leasing (£m)

269

-16

842

-18

3,639

-19

Operating leasing (£m)

399

-19

1,299

-23

5,576

-20

Lease/Hire purchase (£m)

1,040

-24

3,256

-34

14,942

-23

Other finance (£m)

329

21

976

2

3,434

5

 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.

 

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