13 December 2017
New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 7% in October, compared with the same month last year.
The plant and machinery finance and business equipment finance sectors reported new business up in October by 6% and 13% respectively, compared with the same month in 2016, while new finance for IT equipment was up by 22% over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“Growth in the asset finance market was broad-based in October, with most of the main asset sectors reporting increases in new business.
“The industry is on course to report a record level of annual new business in 2017 of around £32 billion.”
|
Oct 2017 |
% change on prev. year |
3 months to Oct 2017 |
% change on prev. year |
12 months to Oct 2017 |
% change on prev. year |
|
|
Total FLA asset finance (£m) |
2,672 |
+7 |
7,625 |
+1 |
31,771 |
+5 |
|
Total excluding high value (£m) |
2,665 |
+9 |
7,568 |
+3 |
30,772 |
+7 |
|
Data Extracts: By asset: |
||||||
|
Plant and machinery finance (£m) |
489 |
+6 |
1,485 |
+1 |
6,518 |
+12 |
|
Commercial vehicle finance (£m) |
660 |
+5 |
1,883 |
0 |
7,520 |
+2 |
|
IT equipment finance (£m) |
195 |
+22 |
579 |
+4 |
2,248 |
0 |
|
Business equipment finance (£m) |
196 |
+13 |
603 |
+8 |
2,585 |
+12 |
|
Car finance (£m) |
911 |
+8 |
2,413 |
+2 |
9,833 |
+6 |
|
Aircraft, ships and rolling stock finance (£m) |
17 |
-64 |
44 |
-52 |
586 |
+10 |
|
By channel: |
||||||
|
Direct finance (£m) |
1,395 |
+6 |
3,786 |
+1 |
15,585 |
+4 |
|
Broker-introduced finance (£m) |
505 |
+14 |
1,478 |
+5 |
5,785 |
+13 |
|
Sales finance (£m) |
765 |
+11 |
2,304 |
+7 |
9,403 |
+7 |
|
By product: |
||||||
|
Finance leasing (£m) |
328 |
+5 |
945 |
+1 |
4,005 |
-3 |
|
Operating leasing (£m) |
553 |
-1 |
1,678 |
-2 |
7,057 |
+6 |
|
Lease/Hire purchase (£m) |
1,519 |
+14 |
4,148 |
+5 |
16,765 |
+10 |
|
Other finance (£m) |
271 |
-5 |
855 |
-11 |
3,944 |
-5 |
Note to editors:
- In 2016, FLA members provided £118 billion of new finance to UK businesses and households. £30 billion of finance was provided to businesses and the public sector. FLA members financed more than a third of UK investment in machinery, equipment and purchased software in the UK in 2016.
- For media enquiries, please contact the FLA press office on 020 7420 9656.