Finance & Leasing Association22 August 2019
Asset finance market grows by 6% in June
New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 6% in June, compared with the same month in 2018. In the first half of 2019, new business was 8% higher than in the same period in 2018.
The commercial vehicle finance and plant and machinery finance sectors reported new business up in June by 10% and 1% respectively compared with the same month in 2018. New business reported by the business equipment finance sector fell by 1% over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“A strong performance by the asset finance market in the first half of 2019 meant the latest annual new business total reported by the industry reached a record level of more than £34 billion.
“Asset finance continues to be popular with businesses of all sizes. Of the total new finance provided to businesses in the first six months of 2019, more than £10 billion went to SMEs – 6% higher than in the first half of 2018.”
| Jun 2019 |
% change on prev. year |
3 months to Jun 2019 |
% change on prev. year |
12 months to Jun 2019 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
3,251 |
+6 |
9,110 |
+4 |
34,066 |
+7 |
| Total excluding high value (£m) |
2,793 |
-2 |
8,414 |
+4 |
31,633 |
+5 |
|
|
|
|
|
|
|
|
| Data Extracts:
By asset: |
|
|
|
|
|
|
| Plant and machinery finance (£m) |
617 |
+1 |
1,862 |
+6 |
7,270 |
+11 |
| Commercial vehicle finance (£m) |
838 |
+10 |
2,426 |
+14 |
8,944 |
+14 |
| IT equipment finance (£m) |
262 |
-25 |
621 |
-12 |
2,726 |
+6 |
| Business equipment finance (£m) |
221 |
-1 |
653 |
+4 |
2,659 |
+7 |
| Car finance (£m) |
822 |
-1 |
2,556 |
+1 |
8,889 |
-3 |
| Aircraft, ships and rolling stock finance (£m) |
28 |
-24 |
108 |
+68 |
428 |
+93 |
|
By channel: |
|
|
|
|
|
|
| Direct finance (£m) |
1,415 |
0 |
4,294 |
+6 |
15,971 |
+5 |
| Broker-introduced finance (£m) |
550 |
+6 |
1,708 |
+11 |
6,522 |
+15 |
| Sales finance (£m) |
828 |
-11 |
2,412 |
-3 |
9,140 |
-1 |
|
By product: |
|
|
|
|
|
|
| Finance leasing (£m) |
326 |
-12 |
1,032 |
+2 |
4,262 |
+10 |
| Operating leasing (£m) |
512 |
-4 |
1,576 |
+4 |
6,112 |
-4 |
| Lease/Hire purchase (£m) |
1,778 |
+4 |
5,262 |
+5 |
19,136 |
+10 |
| Other finance (£m) |
371 |
+16 |
836 |
+5 |
3,272 |
+12 |
Note to editors:
- In 2018, FLA members provided £136 billion of new finance to UK businesses and households. £33 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 2018.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
