9 February 2018
New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 5% in 2017 – the seventh consecutive year of growth. New business in December 2017 increased by 4% compared with the same month in 2016.
The plant and machinery finance and commercial vehicle finance sectors reported new business up in 2017 by 12% and 1% respectively, compared with 2016, while new finance for business equipment was up by 7% over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The asset finance industry reported a record level of new business of almost £32 billion in 2017, despite challenging economic conditions and subdued business investment growth.
“The latest figures also reveal that asset finance is a vital source of funding for SMEs when investing in business equipment and machinery. Of the total asset finance new business in 2017, £18.6 billion went to SMEs – 12% higher than in 2016.”
|
Dec 2017 |
% change on prev. year |
3 months to Dec 2017 |
% change on prev. year |
12 months to Dec 2017 |
% change on prev. year |
|
|
Total FLA asset finance (£m) |
2,632 |
+4 |
7,861 |
+5 |
31,769 |
+5 |
|
Total excluding high value (£m) |
2,483 |
-1 |
7,695 |
+5 |
30,752 |
+6 |
|
Data Extracts: By asset: |
||||||
|
Plant and machinery finance (£m) |
512 |
+1 |
1,515 |
+5 |
6,617 |
+12 |
|
Commercial vehicle finance (£m) |
572 |
-14 |
1,934 |
-1 |
7,480 |
+1 |
|
IT equipment finance (£m) |
293 |
+19 |
726 |
+14 |
2,285 |
+2 |
|
Business equipment finance (£m) |
227 |
+6 |
624 |
+6 |
2,581 |
+7 |
|
Car finance (£m) |
629 |
-2 |
2,243 |
+4 |
9,531 |
+5 |
|
Aircraft, ships and rolling stock finance (£m) |
36 |
-41 |
60 |
-50 |
549 |
+20 |
|
By channel: |
||||||
|
Direct finance (£m) |
1,153 |
-7 |
3,746 |
0 |
15,477 |
+4 |
|
Broker-introduced finance (£m) |
579 |
+24 |
1,620 |
+21 |
5,839 |
+14 |
|
Sales finance (£m) |
752 |
-8 |
2,329 |
+4 |
9,436 |
+7 |
|
By product: |
||||||
|
Finance leasing (£m) |
403 |
+1 |
1,022 |
+5 |
3,809 |
+6 |
|
Operating leasing (£m) |
511 |
-12 |
1,624 |
-4 |
6,755 |
0 |
|
Lease/Hire purchase (£m) |
1,225 |
+1 |
4,162 |
+5 |
16,924 |
+8 |
|
Other finance (£m) |
493 |
+45 |
1,053 |
+19 |
4,281 |
+5 |
Note to editors:
- In 2017, FLA members provided £128 billion of new finance to UK businesses and households. £32 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 2017.
- For media enquiries, please contact the FLA press office on 020 7420 9656.