Finance & Leasing Association8 July 2016
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 May, compared with the same month last year.
Commercial vehicle finance increased by 21% in May compared with the same month in 2015. Business equipment finance and IT equipment finance were up 27% and 32% respectively over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“Growth in asset finance new business rebounded in May, as a wider range of asset sectors reported strong growth. The latest official data from the Office for National Statistics confirmed our estimates that FLA asset finance providers funded 31.8% of total UK investment in machinery, equipment and purchased software in the twelve months to March – the highest percentage for almost seven years.”
| May 2016 |
% change on prev. year |
3 months to May 2016 |
% change on prev. year |
12 months to May 2016 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
2,353 |
+9 |
8,364 |
+7 |
29,916 |
+8 |
| Total excluding high value (£m) |
2,315 |
+9 |
7,989 |
+6 |
28,823 |
+8 |
| Data Extracts:
By asset: |
||||||
| Plant and machinery finance (£m) |
451 |
-1 |
1,528 |
-3 |
5,796 |
+2 |
| Commercial vehicle finance (£m) |
582 |
+21 |
1,965 |
+9 |
7,143 |
+14 |
| IT equipment finance (£m) |
187 |
+32 |
584 |
+22 |
2,296 |
+22 |
| Business equipment finance (£m) |
177 |
+27 |
600 |
+13 |
2,139 |
-3 |
| Car finance (£m) |
733 |
-6 |
2,688 |
0 |
9,071 |
+5 |
| Aircraft, ships and rolling stock finance (£m) |
31 |
+125 |
112 |
-42 |
453 |
+1 |
|
By channel: |
||||||
| Direct finance (£m) |
1,195 |
+9 |
4,056 |
+4 |
14,524 |
+8 |
| Broker-introduced finance (£m) |
443 |
+17 |
1,418 |
+15 |
5,212 |
+9 |
| Sales finance (£m) |
677 |
+5 |
2,515 |
+4 |
9,087 |
+7 |
|
By product: |
||||||
| Finance leasing (£m) |
289 |
+31 |
945 |
+16 |
3,833 |
+8 |
| Operating leasing (£m) |
555 |
+11 |
1,959 |
+7 |
6,847 |
+9 |
| Lease/Hire purchase (£m) |
1,258 |
+9 |
4,255 |
+1 |
15,265 |
+7 |
| Other finance (£m) |
251 |
-9 |
1,205 |
+30 |
3,971 |
+11 |
Note to editors:
- The FLA’s response to the recent EU referendum can be found in this press release.
- In 2015, FLA members provided £110 billion of new finance to UK businesses and households. £29 billion of finance was provided to businesses and the public sector. FLA members financed almost 32% of UK investment in machinery, equipment and purchased software in the UK in 2015.
