Finance & Leasing Association10 October 2016
New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 18% in August, compared with the same month last year.
New business reported by the commercial vehicle finance and business equipment finance sectors grew in August by 28% and 24% respectively, while plant and machinery finance new business was up by 20% over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“August saw the asset finance market record its strongest rate of new business growth so far this year, with double-digit growth across most of the main asset sectors. The strong performance of the plant and machinery finance sector was driven by higher levels of new finance for manufacturing, construction and agricultural equipment.”
| Aug 2016 |
% change on prev. year |
3 months to Aug 2016 |
% change on prev. year |
12 months to Aug 2016 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
2,223 |
+18 |
7,659 |
+8 |
30,555 |
+8 |
| Total excluding high value (£m) |
2,152 |
+17 |
7,223 |
+5 |
29,189 |
+7 |
| Data Extracts:
By asset: |
||||||
| Plant and machinery finance (£m) |
504 |
+20 |
1,494 |
0 |
5,793 |
+1 |
| Commercial vehicle finance (£m) |
562 |
+28 |
1,751 |
+11 |
7,325 |
+13 |
| IT equipment finance (£m) |
177 |
-10 |
575 |
-9 |
2,270 |
+7 |
| Business equipment finance (£m) |
186 |
+24 |
651 |
+25 |
2,269 |
+4 |
| Car finance (£m) |
555 |
+10 |
2,233 |
+5 |
9,180 |
+5 |
| Aircraft, ships and rolling stock finance (£m) |
28 |
+1 |
147 |
+172 |
546 |
+18 |
|
By channel: |
||||||
| Direct finance (£m) |
1,098 |
+16 |
3,738 |
+9 |
14,857 |
+9 |
| Broker-introduced finance (£m) |
449 |
+31 |
1,383 |
+11 |
5,379 |
+10 |
| Sales finance (£m) |
606 |
+10 |
2,101 |
-6 |
8,953 |
+3 |
|
By product: |
||||||
| Finance leasing (£m) |
273 |
+20 |
889 |
+3 |
3,878 |
+6 |
| Operating leasing (£m) |
489 |
+10 |
1,639 |
+4 |
6,910 |
+7 |
| Lease/Hire purchase (£m) |
1,178 |
+15 |
3,937 |
+5 |
15,484 |
+6 |
| Other finance (£m) |
283 |
+49 |
1,195 |
+35 |
4,283 |
+19 |
Note to editors:
- In 2015, FLA members provided £110 billion of new finance to UK businesses and households. £29 billion of finance was provided to businesses and the public sector. FLA members financed almost 32% of UK investment in machinery, equipment and purchased software in the UK in 2015.
