Finance & Leasing Association18 December 2018
New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 9% in October, compared with the same month last year.
The plant and machinery finance and business equipment finance sectors reported new business up by 16% and 29% respectively, compared with October 2017, while new finance for commercial vehicles increased by 23% over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The asset finance market made a strong start to the final quarter of 2018, with new finance for construction and agricultural equipment up in October by 27% and 19% respectively, compared with the same month in 2017.
“Asset finance new business in 2018 as a whole is likely to reach a record level, despite continued economic uncertainty weighing on business investment.”
| Oct 2018 |
% change on prev. year |
3 months to Oct 2018 |
% change on prev. year |
12 months to Oct 2018 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
2,890 |
+9 |
8,058 |
+6 |
32,310 |
+3 |
| Total excluding high value (£m) |
2,683 |
+3 |
7,485 |
+2 |
30,215 |
+2 |
|
|
|
|
|
|
|
|
| Data Extracts: By asset: |
|
|
|
|
|
|
| Plant and machinery finance (£m) |
572 |
+16 |
1,663 |
+10 |
6,601 |
+2 |
| Commercial vehicle finance (£m) |
821 |
+23 |
2,103 |
+10 |
7,849 |
+4 |
| IT equipment finance (£m) |
167 |
-19 |
711 |
+19 |
2,741 |
+19 |
| Business equipment finance (£m) |
253 |
+29 |
671 |
+12 |
2,614 |
+2 |
| Car finance (£m) |
763 |
-14 |
2,033 |
-13 |
8,915 |
-5 |
| Aircraft, ships and rolling stock finance (£m) |
76 |
+364 |
98 |
+125 |
308 |
-47 |
|
By channel: |
|
|
|
|
|
|
| Direct finance (£m) |
1,360 |
-1 |
3,713 |
+1 |
15,044 |
0 |
| Broker-introduced finance (£m) |
578 |
+22 |
1,578 |
+14 |
6,002 |
+12 |
| Sales finance (£m) |
746 |
-2 |
2,194 |
-5 |
9,169 |
0 |
|
By product: |
|
|
|
|
|
|
| Finance leasing (£m) |
430 |
+32 |
1,165 |
+24 |
4,075 |
+8 |
| Operating leasing (£m) |
520 |
-2 |
1,430 |
-11 |
6,063 |
-10 |
| Lease/Hire purchase (£m) |
1,653 |
+8 |
4,459 |
+6 |
17,702 |
+5 |
| Other finance (£m) |
195 |
-11 |
668 |
-1 |
3,055 |
-3 |
Note to editors:
- In 2017, FLA members provided £128 billion of new finance to UK businesses and households. £32 billion of finance was provided to businesses and the public sector. FLA members financed a third of UK investment in machinery, equipment and purchased software in the UK in 2017.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
