Asset finance market reports new business stable in November
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