Finance & Leasing Association11 November 2016
New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 12% in September, compared with the same month last year – the thirty-sixth consecutive month of growth. In Q3 2016, new business was also up by 12% compared with the same quarter in 2015.
The commercial vehicle finance and business equipment finance sectors reported new business up in September by 5% and 29% respectively, while plant and machinery finance new business increased by 16% over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The first post-EU referendum quarterly results saw the asset finance market record its strongest rate of new business growth for more than a year.
“Encouragingly, September saw the second consecutive month of growth in new finance provided for plant and machinery. In the third quarter as a whole, new finance for agricultural equipment and construction equipment grew by 16% and 4% respectively, compared with Q3 2015.”
| Sep 2016 |
% change on prev. year |
3 months to Sep 2016 |
% change on prev. year |
12 months to Sep 2016 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
2,933 |
+12 |
7,746 |
+12 |
30,240 |
+8 |
| Total excluding high value (£m) |
2,796 |
+10 |
7,218 |
+7 |
28,820 |
+7 |
| Data Extracts: By asset: |
||||||
| Plant and machinery finance (£m) |
537 |
+16 |
1,494 |
+6 |
5,864 |
+2 |
| Commercial vehicle finance (£m) |
700 |
+5 |
1,795 |
+9 |
7,359 |
+12 |
| IT equipment finance (£m) |
223 |
+2 |
580 |
-4 |
2,277 |
+4 |
| Business equipment finance (£m) |
221 |
+29 |
614 |
+19 |
2,320 |
+10 |
| Car finance (£m) |
961 |
+10 |
2,336 |
+8 |
9,267 |
+5 |
| Aircraft, ships and rolling stock finance (£m) |
16 |
-67 |
149 |
+51 |
512 |
+4 |
| By channel: |
||||||
| Direct finance (£m) |
1,326 |
+13 |
3,670 |
+12 |
14,834 |
+9 |
| Broker-introduced finance (£m) |
523 |
+28 |
1,346 |
+17 |
5,034 |
+10 |
| Sales finance (£m) |
946 |
0 |
2,203 |
-4 |
8,952 |
+2 |
| By product: |
||||||
| Finance leasing (£m) |
332 |
+15 |
897 |
+10 |
3,923 |
+12 |
| Operating leasing (£m) |
733 |
+10 |
1,752 |
+5 |
6,974 |
+7 |
| Lease/Hire purchase (£m) |
1,459 |
+1 |
3,955 |
+5 |
15,503 |
+5 |
| Other finance (£m) |
408 |
+85 |
1,142 |
+77 |
3,841 |
+21 |
Note to editors:
- In 2015, FLA members provided £110 billion of new finance to UK businesses and households. £29 billion of finance was provided to businesses and the public sector. FLA members financed almost 32% of UK investment in machinery, equipment and purchased software in the UK in 2015.
