Finance & Leasing Association13 January 2017
New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 13% in November, compared with the same month in 2015.
The plant and machinery finance and business equipment finance sectors reported new business up in November by 18% and 33% respectively, while commercial vehicle finance new business increased by 11% over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“November was a particularly strong month for the asset finance market, with double-digit growth across all of the main asset sectors.
“Recent months have seen a recovery in new finance provided for construction and agricultural equipment, with the latest FLA figures for November showing new business in these sectors up by 29% and 20% respectively.”
| Nov 2016 |
% change on prev. year |
3 months to Nov 2016 |
% change on prev. year |
12 months to Nov 2016 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
2,494 |
+13 |
7,929 |
+9 |
30,561 |
+8 |
| Total excluding high value (£m) |
2,370 |
+13 |
7,627 |
+8 |
29,153 |
+7 |
| Data Extracts: By asset: |
||||||
| Plant and machinery finance (£m) |
495 |
+18 |
1,508 |
+14 |
5,981 |
+4 |
| Commercial vehicle finance (£m) |
634 |
+11 |
1,962 |
+5 |
7,416 |
+11 |
| IT equipment finance (£m) |
234 |
+68 |
617 |
+16 |
2,355 |
+6 |
| Business equipment finance (£m) |
225 |
+33 |
628 |
+26 |
2,401 |
+16 |
| Car finance (£m) |
711 |
+11 |
2,507 |
+5 |
9,301 |
+5 |
| Aircraft, ships and rolling stock finance (£m) |
20 |
-70 |
82 |
-42 |
486 |
-4 |
| By channel: |
||||||
| Direct finance (£m) |
1,169 |
+14 |
3,809 |
+10 |
15,026 |
+9 |
| Broker-introduced finance (£m) |
432 |
+12 |
1,380 |
+12 |
5,070 |
+9 |
| Sales finance (£m) |
769 |
+13 |
2,438 |
+4 |
9,056 |
+2 |
| By product: |
||||||
| Finance leasing (£m) |
285 |
-16 |
909 |
-4 |
3,844 |
+9 |
| Operating leasing (£m) |
575 |
-1 |
1,899 |
+6 |
7,010 |
+7 |
| Lease/Hire purchase (£m) |
1,393 |
+33 |
4,195 |
+8 |
15,803 |
+5 |
| Other finance (£m) |
242 |
+2 |
925 |
+37 |
3,904 |
+23 |
Note to editors:
- 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.
