Finance & Leasing Association10 October 2019
New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) held steady in August 2019, but was up by 6% in the twelve months to August, compared with the same period last year.
The commercial vehicle finance, and plant and machinery finance sectors reported new business up in August by 11% and 1% respectively, compared with the same month in 2018.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“August saw further double-digit growth in new finance provided for commercial vehicles as businesses were keen to invest in the newest technology.
“The asset finance market reported 7% new business growth in the first eight months of 2019. The strong performance of the industry so far this year meant it funded over 41% of investment in machinery, equipment and purchased software in Q2 2019, an eleven-year high.”
| Aug 2019 |
% change on prev. year |
3 months to Aug 2019 |
% change on prev. year |
12 months to Aug 2019 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
2,452 |
0 |
8,778 |
+5 |
34,311 |
+6 |
| Total excluding high value (£m) |
2,321 |
+1 |
7,946 |
+2 |
31,820 |
+5 |
|
|
|
|
|
|
|
|
| Data Extracts:
By asset: |
|
|
|
|
|
|
| Plant and machinery finance (£m) |
585 |
+1 |
1,842 |
+5 |
7,343 |
+11 |
| Commercial vehicle finance (£m) |
667 |
+11 |
2,256 |
+11 |
9,110 |
+14 |
| IT equipment finance (£m) |
166 |
-16 |
704 |
-15 |
2,692 |
0 |
| Business equipment finance (£m) |
211 |
-1 |
626 |
-4 |
2,622 |
+4 |
| Car finance (£m) |
572 |
-1 |
2,269 |
+2 |
8,935 |
-2 |
| Aircraft, ships and rolling stock finance (£m) |
19 |
+95 |
173 |
+126 |
533 |
+115 |
|
By channel: |
|
|
|
|
|
|
| Direct finance (£m) |
1,160 |
0 |
4,042 |
+4 |
16,086 |
+6 |
| Broker-introduced finance (£m) |
513 |
+6 |
1,627 |
+5 |
6,574 |
+12 |
| Sales finance (£m) |
648 |
0 |
2,276 |
-3 |
9,160 |
-2 |
|
By product: |
|
|
|
|
|
|
| Finance leasing (£m) |
310 |
+4 |
987 |
+2 |
4,321 |
+11 |
| Operating leasing (£m) |
430 |
-2 |
1,478 |
-2 |
6,098 |
-4 |
| Lease/Hire purchase (£m) |
1,373 |
+3 |
4,927 |
+7 |
19,408 |
+10 |
| Other finance (£m) |
270 |
+13 |
954 |
+3 |
3,252 |
+6 |
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.
