Finance & Leasing Association7 November 2013
New figures released today by the Finance & Leasing Association (FLA) show that, in September, new asset finance deals below £20 million grew for the sixth consecutive month by 2% to £1.9 billion. This market reported new business in Q3 2013 of £5.3 billion, 4% higher than the same quarter in 2012. IT equipment finance reported the strongest rate of growth in September, with new business up 14% compared with the same month a year earlier. New business reported by the plant and machinery, and new car finance sectors grew by 6% and 7% respectively.
Commenting, Geraldine Kilkelly, Chief Economist at the FLA said: “After a slow start to 2013, the asset finance market grew in Q2 and Q3. Recent data from the Office for National Statistics suggest that the importance of asset finance in supporting business investment has increased. The percentage of fixed capital investment financed by FLA members grew to 34.1% in the second quarter of 2013, its highest level since Q1 2011.
| Sep 2013 | % change on Sep 2012 | 3 months to Sep 2013 | % change on prev. year | 12 months to Sep 2013 | % change on prev. year | |
| Total FLA asset finance (£m) | 1,929 | -2 | 5,433 | +1 | 21,457 | -1 |
| Total FLA asset finance excluding high value (£m) | 1,929 | +2 | 5,328 | +4 | 20,985 | +1 |
| Data Extracts: | ||||||
| Plant and machinery finance (£m) | 369 | +6 | 1,163 | +7 | 4,366 | +3 |
| Commercial vehicle finance (£m) | 484 | +3 | 1,229 | +10 | 4,740 | +1 |
| IT equipment finance (£m) | 129 | +14 | 323 | +4 | 1,483 | +10 |
| Business equipment finance (£m) | 150 | -13 | 438 | +0 | 1,865 | -4 |
| Car finance (£m) | 600 | +7 | 1,617 | +1 | 6,702 | +3 |
| Aircraft, ships and rolling stock finance (£m) | 28 | -55 | 56 | -70 | 337 | -27 |
Note to editors:
- Core asset finance new business excludes high value finance for deals of £20 million or more.
- Fixed capital investment excluding real property and own-account software.
- In 2012 FLA members provided £80.2 billion of new finance to UK businesses and households. £21.5 billion of finance was provided to businesses and the public sector, representing around 28% of all fixed capital investment (excluding real property and own-account software) in the UK last year.
