Asset finance market reports new business stable in November

11-Jan-2019

New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) in November was at a similar level to the same month in 2017. 

The plant and machinery finance and business equipment finance sectors reported new business up in November by 9% and 8% respectively, compared with the same month in 2017.  By contrast, new finance for business cars and IT equipment fell by 6% and 32% over the same period.

Commenting on the figures, Geraldine Kilkelly, head of research and chief economist at the FLA, said:

“The asset finance market’s performance in November means the industry remains on track to report a record level of new business in 2018 as a whole.

“The percentage of UK investment in machinery, equipment and purchased software financed by FLA members reached 32.2% in the twelve months to September 2018, a nine-year high.”

 

Nov 2018

% change on prev. year

3 months to Nov

2018

% change on prev. year

12 months to Nov

2018

% change on prev. year

Total FLA asset finance (£m)

2,540

0

8,176

+3

32,315

+3

Total excluding high value (£m)

2,452

0

7,669

-1

30,221

+2

 

 

 

 

 

 

 

Data Extracts:

 

By asset:

 

 

 

 

 

 

Plant and machinery finance (£m)

541

+9

1,637

+9

6,644

+2

Commercial vehicle finance (£m)

723

+4

2,242

+8

7,877

+4

IT equipment finance (£m)

161

-32

674

+2

2,665

+16

Business equipment finance (£m)

232

+8

690

+10

2,631

+3

Car finance (£m)

661

-6

2,111

-14

8,874

-5

Aircraft, ships and rolling stock finance (£m)

17

+114

105

+134

318

-45

 

By channel:

 

 

 

 

 

 

Direct finance (£m)

1,200

+5

3,770

+1

15,101

0

Broker-introduced finance (£m)

545

+8

1,640

+12

6,042

+11

Sales finance (£m)

707

-11

2,260

-10

9,079

-2

 

By product:

 

 

 

 

 

 

Finance leasing (£m)

320

+10

1,189

+24

4,103

+9

Operating leasing (£m)

496

-15

1,500

-14

5,975

-12

Lease/Hire purchase (£m)

1,462

+5

4,605

+5

17,776

+6

Other finance (£m)

191

-1

619

-4

3,054

-4