9 June 2017
New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 5% in April, compared with the same month last year.
The plant and machinery finance sector reported new business up in April by 9%, while new finance for business cars grew by 8% over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“Asset finance new business increased by 8% in the first four months of 2017, in line with our expectations of single-digit growth for the year overall.
“The plant and machinery finance sector returned another strong performance in April, with new finance for agricultural equipment and construction equipment up by 17% and 8% respectively.”
Apr 2017 |
% change on prev. year |
3 months to Apr 2017 |
% change on prev. year |
12 months to Apr 2017 |
% change on prev. year |
|
Total FLA asset finance (£m) |
2,677 |
+5 |
8,359 |
+6 |
30,952 |
+6 |
Total excluding high value (£m) |
2,486 |
-3 |
8,006 |
+6 |
29,624 |
+6 |
Data Extracts: By asset: |
||||||
Plant and machinery finance (£m) |
511 |
+9 |
1,734 |
+13 |
6,161 |
+6 |
Commercial vehicle finance (£m) |
577 |
-6 |
1,962 |
+4 |
7,437 |
+6 |
IT equipment finance (£m) |
122 |
-12 |
483 |
-8 |
2,222 |
-3 |
Business equipment finance (£m) |
177 |
-10 |
619 |
+4 |
2,472 |
+18 |
Car finance (£m) |
974 |
+8 |
2,696 |
+7 |
9,485 |
+4 |
Aircraft, ships and rolling stock finance (£m) |
174 |
+192 |
310 |
+243 |
662 |
+52 |
By channel: |
||||||
Direct finance (£m) |
1,329 |
-4 |
4,055 |
+6 |
15,107 |
+5 |
Broker-introduced finance (£m) |
431 |
0 |
1,473 |
+17 |
5,440 |
+14 |
Sales finance (£m) |
726 |
-2 |
2,478 |
+2 |
9,077 |
+1 |
By product: |
||||||
Finance leasing (£m) |
297 |
-7 |
943 |
-4 |
3,986 |
-1 |
Operating leasing (£m) |
707 |
+23 |
2,047 |
+17 |
6,923 |
+6 |
Lease/Hire purchase (£m) |
1,410 |
+2 |
4,395 |
+9 |
16,084 |
+8 |
Other finance (£m) |
262 |
-8 |
973 |
-14 |
3,960 |
+7 |
Note to editors:
- In 2016, FLA members provided £118 billion of new finance to UK businesses and households. £30 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 2016.
- For media enquiries, please contact the FLA press office on 020 7420 9656.