Asset finance market grew by 15% in March 2021

7 May 2021

New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew by 15% in March 2021 compared with the same month in 2020. In Q1 2021, new business grew by 1% compared with Q1 2020.

The commercial vehicle finance sector reported new business up in March by 22% compared with the same month in 2020.  The business equipment finance and plant and machinery finance sectors reported new business up by 14% and 13% respectively, over the same period.

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

“March saw the asset finance market report its highest monthly new business total since June 2019. A year on since the introduction of the first restrictions to deal with the pandemic, the market and wider economy continue to be impacted by ongoing restrictions. However, the latest set of figures show that the industry has adapted to meet the challenges posed by the crisis.

“FLA’s most recent research suggests that asset finance providers are increasingly optimistic about the outlook for the rest of 2021.  While mindful of the possibility of higher unemployment and a dip in confidence once the Government support schemes come to an end, 93% of respondents to our latest industry outlook survey expect new business growth over the next twelve months.”

 

Mar 2021

% change on prev. year

3 months to Mar 2021

% change on prev. year

12 months to Mar 2021

% change on prev. year

Total FLA asset finance (£m)

3,217

15

7,603

1

27,420

-20

Total excluding high value (£m)

3,008

12

6,965

-2

25,531

-20

 

 

 

 

 

 

 

Data Extracts:

 

By asset:

 

 

 

 

 

 

Plant and machinery finance (£m)

649

13

1,704

9

6,011

-14

Commercial vehicle finance (£m)

859

22

2,036

7

7,137

-19

IT equipment finance (£m)

198

-18

518

-23

2,334

-19

Business equipment finance (£m)

205

14

449

-14

1,698

-25

Car finance (£m)

908

9

1,948

-5

7,171

-25

Aircraft, ships and rolling stock finance (£m)

25

-8

80

-30

308

-42

 

By channel:

 

 

 

 

 

 

Direct finance (£m)

1,236

-3

3,080

-10

11,955

-25

Broker-introduced finance (£m)

718

42

1,626

7

5,554

-16

Sales finance (£m)

1,054

18

2,259

4

8,022

-14

 

By product:

 

 

 

 

 

 

Finance leasing (£m)

346

4

828

-10

3,387

-19

Operating leasing (£m)

654

15

1,473

-3

5,248

-23

Lease/Hire purchase (£m)

1,752

16

4,086

2

14,546

-21

Other finance (£m)

321

17

909

7

3,350

-4

 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 almost 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.

 

 

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