9 July 2013
New figures released today by the Finance & Leasing Association (FLA) show strong performances by many asset finance sectors. Overall, new business involving deals of up to £20 million grew by 4% in May 2013 to almost £1.9 billion. Sectors that performed particularly well included IT equipment finance, up by 79% compared with May 2012.
So far in 2013, new business in this sector has grown by 21%. May was also a good month for the commercial vehicle and business equipment finance sectors, which recorded growth of 7% and 12% respectively compared with May 2012.
Commenting on the statistics, Julian Rose, Head of Asset Finance at the FLA, said: “It’s good to see the industry returning such healthy figures, showing that more and more firms see asset finance as an attractive alternative to other types of business finance.”
|May 2013||% change on May 2012||3 months to May 2013||% change on prev. year||12 months to May 2013||% change on prev. year|
|Total FLA asset finance (£m)||1,851||+2||5,669||+1||21,327||-1|
|Total leasing and hire purchase excluding high value (£m)||1,850||+4||5,549||0||20,689||+1|
|Plant and machinery finance (£m)||387||0||1,142||-2||4,212||+1|
|Commercial vehicle finance (£m)||386||+7||1,241||+3||4,553||-2|
|IT equipment finance (£m)||158||+79||403||+26||1,454||+16|
|Business equipment finance (£m)||161||+12||495||+7||1,822||-8|
|Car finance (£m)||576||-15||1,846||-6||6,668||+2|
|Aircraft, ships and rolling stock finance (£m)||8||-41||61||+20||478||+40|
Note to editors:
- The fall in finance provided for new cars bought by businesses is attributable in part to a particularly strong performance by this market in May 2012.
- In 2012 FLA members provided £76.6 billion of new finance to UK businesses and households. £21.5 billion of finance was provided to businesses and the public sector, representing around 29% of all fixed capital investment (excluding real property and own-account software) in the UK last year.