Finance & Leasing Association14 January 2016
New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 10% in November 2015, compared with the same month in the previous year.
New finance provided for commercial vehicles and IT equipment grew by 20% and 15% respectively in November, while plant and machinery finance was up 8% over the same period.
Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“In November, the asset finance industry reported its strongest rate of new business growth since June. In 2015 as a whole, we expect the market to record its second consecutive year of double-digit new business growth and reach its highest level of annual new business since 2008.”
| Nov 2015 |
% change on prev. year |
3 months to Nov 2015 |
% change on prev. year |
12 months to Nov 2015 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
2,250 |
+10 |
7,447 |
+5 |
28,668 |
+11 |
| Total excluding high value (£m) |
2,138 |
+10 |
7,188 |
+6 |
27,679 |
+10 |
| Data Extracts: By asset: |
||||||
| Plant and machinery finance (£m) |
423 |
+8 |
1,324 |
+4 |
5,767 |
+10 |
| Commercial vehicle finance (£m) |
579 |
+20 |
1,888 |
+11 |
6,682 |
+9 |
| IT equipment finance (£m) |
139 |
+15 |
535 |
+23 |
2,184 |
+37 |
| Business equipment finance (£m) |
167 |
-13 |
496 |
-18 |
2,071 |
-5 |
| Car finance (£m) |
634 |
+7 |
2,370 |
+6 |
8,878 |
+11 |
| Aircraft, ships and rolling stock finance (£m) |
71 |
+16 |
145 |
+49 |
510 |
+92 |
| By channel: |
||||||
| Direct finance (£m) |
1,068 |
+13 |
3,546 |
+7 |
13,895 |
+14 |
| Broker-introduced finance (£m) |
386 |
+1 |
1,301 |
+4 |
4,924 |
+7 |
| Sales finance (£m) |
684 |
+10 |
2,341 |
+7 |
8,860 |
+7 |
| By product: |
||||||
| Finance leasing (£m) |
342 |
+25 |
952 |
-12 |
3,528 |
+1 |
| Operating leasing (£m) |
580 |
+15 |
1,797 |
+7 |
6,556 |
+8 |
| Lease/Hire purchase (£m) |
1,051 |
+9 |
3,876 |
+11 |
14,977 |
+14 |
| Other finance (£m) |
276 |
-10 |
822 |
-1 |
3,607 |
+18 |
Note to editors:
- In 2014, FLA members provided £100 billion of new finance to UK businesses and households. £26 billion of finance was provided to businesses and the public sector. FLA members financed more than 30% of UK investment in machinery, equipment and purchased software in the UK in 2014.
