18 June 2015
New research, launched today at the Finance & Leasing Association (FLA)’s national asset finance conference, shows that productivity among FLA members providing asset finance (leasing and hire purchase) is almost 7 times higher than the national average.
The research carried out by Oxford Economics measures FLA members’ contribution to the UK economy in 2014. The level of productivity for the asset finance industry, measured in terms of output per worker, puts it in the top 2% of all UK industries.
In 2014, FLA asset finance members provided £26 billion of new finance, primarily through leasing and hire purchase, to support investment in all kinds of equipment by UK businesses. This represented almost 28% of all UK investment in machinery, equipment and purchased software. About 60% of asset finance new business went to small and medium sized enterprises last year.
Simon Goldie, Head of Asset Finance at the FLA, said:
“Leasing and hire purchase can make the difference between firms getting the equipment they need to thrive, or being left behind. Asset finance should be part of the conversation any business-owner has when thinking about investment.”
Notes to editors
1. An executive summary of the Oxford Economics report will be published tomorrow on the FLA website. Links will be sent to you with a further snapshot of performance in the consumer and motor sectors.
2. Oxford Economics is one of the world’s foremost independent global advisory firms, using industry models and analytical tools to provide reports and forecast trends.
3. In 2014, our members provided £100 billion of new finance. £74 billion of this was in the form of consumer credit to support purchases ranging from cars to household goods and £26 billion was provided to businesses and the public sector, representing 27.9% of UK investment in machinery, equipment and purchased software in the UK last year.