5 February 2015
Figures released today by the Finance & Leasing Association (FLA) show growth in asset finance new business of 13% during 2014 to £25.4 billion, the strongest annual rate of growth since the onset of the financial crisis.
Plant and machinery finance grew by 48% in December, IT equipment finance by 10% and business equipment finance by 6%. In 2014 as a whole, plant and machinery finance was up by 21%, business new car finance by 17%, business equipment finance by 13% and IT equipment finance by 5%.
Commenting on the figures, Geraldine Kilkelly, FLA’s Head of Research and Chief Economist, said:
“The figures show a strong recovery in the asset finance market in 2014. Businesses were keen to use leasing and hire purchase to invest in a wide range of assets, with particularly strong growth in new finance for production plant, agricultural equipment and construction equipment.
The core market of deals of up to £20 million wrote new business of £24.6 billion in 2014, and is on target to surpass its pre-crisis peak in 2015.”
Dec 2014 |
% change on prev. year |
3 months to Dec 2014 |
% change on prev. year |
12 months to Dec 2014 |
% change on prev. year |
|
Total FLA asset finance (£m) |
2,502 |
+13 |
6,872 |
+12 |
25,373 |
+13 |
Total excluding high value (£m) |
2,326 |
+6 |
6,567 |
+12 |
24,562 |
+13 |
Data Extracts: |
||||||
Plant and machinery finance (£m) |
571 |
+48 |
1,395 |
+24 |
5,400 |
+21 |
Commercial vehicle finance (£m) |
505 |
-19 |
1,587 |
+2 |
5,830 |
+12 |
IT equipment finance (£m) |
282 |
+10 |
570 |
+25 |
1,624 |
+5 |
Business equipment finance (£m) |
193 |
+6 |
564 |
+16 |
2,185 |
+13 |
Car finance (£m) |
632 |
+11 |
1,972 |
+15 |
7,640 |
+13 |
Aircraft, ships and rolling stock finance (£m) |
32 |
-2 |
108 |
-3 |
263 |
-14 |
Note to editors:
- In 2014, FLA members provided £99.5 billion of new finance to UK businesses, the public sector and households. £25.4 billion of finance was provided to businesses and the public sector. FLA members financed almost 27% of UK investment in machinery, equipment and purchase software in the UK last year.