7 November 2012
Figures from the Finance & Leasing Association (FLA) showed that new asset finance business for deals of up to £20 million grew in the third quarter of 2012 to £5.1bn – a 2% increase compared with the same period a year earlier. New business was slightly lower than in the same month in 2011, down 2% to £1.9 billion.
In September, new business introduced through the broker and sales finance channels grew by 3% (to £329 million) and 4% (to £562 million) respectively. Third quarter results show that broker and sales finance grew by 3% and 11% respectively, while direct finance contracted by 3%. The third quarter also saw new business in plant & machinery and the IT equipment finance sectors up by 8% and 11% respectively compared with Q3 2011.
However, there were small decreases in plant & machinery and the IT equipment finance sectors of 4% (to £332 million) and 6% (to £113 million) in September 2012 when compared to September 2011.
Julian Rose, Head of Asset Finance at the FLA, said: “Despite a modest decrease in new business in September compared to the same month in 2011, FLA members supported business investment of £5.4 billion in the third quarter of 2012, up 4% on the previous year. The Government has a role to play in helping the sector sustain its major economic contribution, by allowing more asset finance businesses access to the Government’s schemes to support business lending, including Funding for Lending and the Business Finance Partnership.”
|Sep 2012||% change on Sep 2011||3 months to Sep 2012||% change on prev. year||12 months to Sep 2012||% change on prev. year|
|Plant and machinery finance (£m)||332||-4||1,071||+8||4,231||+15|
|Commercial vehicle finance (£m)||471||+6||1,119||-1||4,679||+10|
|IT equipment finance (£m)||113||-6||309||+11||1,344||+26|
|Business equipment finance (£m)||173||-1||435||-3||1,936||+1|
|Car finance (£m)||562||-11||1,600||-1||6,480||+5|
|Aircraft, ships and rolling stock finance (£m)||63||+212||190||+189||461||-29|
|Total excl. high value (£m)||1,869||-2||5,108||+2||20,637||+9|
|Total FLA asset finance (£m)||1,946||-4||5,398||+4||21,730||+3|