11 January 2013
UK companies are using asset finance to support more investment in the plant and machinery, vehicles and IT equipment which they need to stimulate growth. Figures for November 2012 from the Finance & Leasing Association released today show a large increase in finance for plant and machinery and, continuing a long-term trend, a significant increase in finance for IT equipment.Finance leasing and hire purchase remain popular choices with businesses, growing by 9% and 12% respectively in the eleven-month period to November 2012.
Geraldine Kilkelly, Head of Research and Chief Economist at the Finance & Leasing Association said: “The figures show growth in finance for key asset sectors as companies invest in the tools they need to grow their businesses.
“IT equipment finance showed the highest growth in November, leading to new business growth in this market of 25% in the eleven-month period to November 2012.”
|Nov 2012||% change on Nov 2011||3 months to Nov 2012||% change on prev. year||12 months to Nov 2012||% change on prev. year|
|Total FLA asset finance (£m)||1,746||-7||5,635||+2||21,886||+3|
|Total excl. high value (£m)||1,726||-1||5,467||+5||20,927||+8|
|Plant and machinery finance (£m)||366||+8||1,061||+7||4,310||+14|
|Commercial vehicle finance (£m)||390||+3||1,282||+7||4,732||+9|
|IT equipment finance (£m)||97||+22||311||+12||1,386||+29|
|Business equipment finance (£m)||138||-18||465||+1||1,942||+1|
|Car finance (£m)||563||+7||1,783||+6||6,656||+7|
|Aircraft, ships and rolling stock finance (£m)||56||-9||196||+118||524||-17|
ENDS Note to editors:
- In 2011 FLA members provided £72.7 billion of new finance to UK businesses and households. £20.9 billion of finance was provided to businesses and the public sector, representing around 27.5% of all fixed capital investment (excluding real property and own-account software) in the UK last year.