Finance & Leasing Association8 March 2019
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 January, compared with the same month last year.
The plant and machinery finance and IT equipment finance sectors reported new business growth in January of 26% and 45% respectively, compared with the same month in 2018. Over the same period, commercial vehicle finance increased by 21%.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The asset finance market made a great start to 2019, with strong growth across most of the major asset sectors.
“The industry is providing vital support to businesses of all sizes during a period of continued economic uncertainty. The percentage of UK investment in machinery, equipment and purchased software financed by FLA members in 2018 reached 34.5%, a decade-high.”
| Jan 2019 |
% change on prev. year |
3 months to Jan 2019 |
% change on prev. year |
12 months to Jan 2019 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
2,521 |
+9 |
7,859 |
+6 |
32,773 |
+4 |
| Total excluding high value (£m) |
2,323 |
+10 |
7,287 |
+6 |
30,681 |
+3 |
|
|
|
|
|
|
|
|
| Data Extracts:
By asset: |
|
|
|
|
|
|
| Plant and machinery finance (£m) |
633 |
+26 |
1,841 |
+21 |
6,978 |
+6 |
| Commercial vehicle finance (£m) |
580 |
+21 |
1,977 |
+14 |
8,083 |
+9 |
| IT equipment finance (£m) |
210 |
+45 |
715 |
+5 |
2,779 |
+16 |
| Business equipment finance (£m) |
185 |
-2 |
665 |
+6 |
2,656 |
+3 |
| Car finance (£m) |
674 |
+13 |
1,951 |
+4 |
8,971 |
-3 |
| Aircraft, ships and rolling stock finance (£m) |
18 |
-35 |
65 |
-9 |
302 |
-45 |
|
By channel: |
|
|
|
|
|
|
| Direct finance (£m) |
1,202 |
+10 |
3,673 |
+10 |
15,372 |
+3 |
| Broker-introduced finance (£m) |
470 |
+18 |
1,520 |
+13 |
6,163 |
+13 |
| Sales finance (£m) |
651 |
+4 |
2,094 |
-3 |
9,145 |
-1 |
|
By product: |
|
|
|
|
|
|
| Finance leasing (£m) |
262 |
+7 |
965 |
+4 |
4,110 |
+9 |
| Operating leasing (£m) |
409 |
-4 |
1,418 |
-5 |
5,963 |
-11 |
| Lease/Hire purchase (£m) |
1,431 |
+23 |
4,431 |
+18 |
18,421 |
+9 |
| Other finance (£m) |
371 |
+9 |
812 |
+3 |
3,083 |
-3 |
Note to editors:
- In 2018, FLA members provided £137 billion of new finance to UK businesses and households. £33 billion of finance was provided to businesses and the public sector. FLA members financed around 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.
