Finance & Leasing Association18 December 2019
New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew by 2% in October 2019 compared with the same month in 2018, and has risen by 6% in the first ten months of 2019.
Within this overall increase, the IT equipment finance sector reported strong double-digit growth in October as new business increased by 43% compared with the same month in the previous year. The business new car finance and plant and machinery finance sectors also reported new business growth of 13% and 5% respectively, over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The asset finance industry is on track to report a record level of new business in 2019 of around £35 billion. The industry has provided support to businesses keen to invest in new technology which will increase productivity and maintain competitiveness.
“Moving forward with the Brexit process should reduce some of the uncertainty that has weighed on business investment since the EU membership referendum. This will provide opportunities for further growth in the asset finance market in 2020.”
| Oct 2019 |
% change on prev. year |
3 months to Oct 2019 |
% change on prev. year |
12 months to Oct 2019 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
2,976 |
+2 |
8,346 |
+3 |
34,530 |
+6 |
| Total excluding high value (£m) |
2,794 |
+4 |
7,813 |
+4 |
32,038 |
+6 |
|
|
|
|
|
|
|
|
| Data Extracts:
By asset: |
|
|
|
|
|
|
| Plant and machinery finance (£m) |
616 |
+5 |
1,825 |
+7 |
7,479 |
+11 |
| Commercial vehicle finance (£m) |
766 |
-10 |
2,163 |
-1 |
9,026 |
+11 |
| IT equipment finance (£m) |
242 |
+43 |
720 |
+1 |
2,736 |
-2 |
| Business equipment finance (£m) |
197 |
-14 |
587 |
-6 |
2,539 |
+1 |
| Car finance (£m) |
805 |
+5 |
2,088 |
+3 |
9,006 |
+2 |
| Aircraft, ships and rolling stock finance (£m) |
49 |
-35 |
89 |
-9 |
514 |
+72 |
|
By channel: |
|
|
|
|
|
|
| Direct finance (£m) |
1,387 |
+2 |
3,771 |
+1 |
16,065 |
+6 |
| Broker-introduced finance (£m) |
649 |
+12 |
1,706 |
+8 |
6,687 |
+12 |
| Sales finance (£m) |
757 |
+1 |
2,336 |
+6 |
9,286 |
+1 |
|
By product: |
|
|
|
|
|
|
| Finance leasing (£m) |
419 |
-3 |
1,133 |
-3 |
4,243 |
+4 |
| Operating leasing (£m) |
523 |
-2 |
1,457 |
-1 |
6,093 |
-1 |
| Lease/Hire purchase (£m) |
1,618 |
-3 |
4,558 |
+1 |
19,448 |
+9 |
| Other finance (£m) |
339 |
+73 |
896 |
+34 |
3,456 |
+13 |
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 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.
