New figures released by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 3% in August, compared with the same month last year.
The plant and machinery finance sector reported new business up in August by 4% compared with the same month in 2016, while new finance for business equipment was up by 8% over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “The asset finance industry has reported solid new business growth so far in 2017. Growth in asset finance provided to manufacturers has been particularly robust, with new business for production and processing plant up by more than 40% in the first eight months of 2017.”
| Aug 2017 | % change on prev. year | 3 months to Aug
2017 |
% change on prev. year | 12 months to Aug
2017 |
% change on prev. year | |
| Total FLA asset finance (£m) | 2,204 | +3 | 7,957 | +6 | 31,803 | +6 |
| Total excluding high value (£m) | 2,163 | +4 | 7,726 | +10 | 30,643 | +7 |
| Data Extracts:
By asset: |
||||||
| Plant and machinery finance (£m) | 502 | +4 | 1,773 | +21 | 6,546 | +14 |
| Commercial vehicle finance (£m) | 513 | -7 | 1,771 | +1 | 7,479 | +2 |
| IT equipment finance (£m) | 171 | -3 | 595 | +3 | 2,224 | -2 |
| Business equipment finance (£m) | 187 | +8 | 694 | +10 | 2,567 | +14 |
| Car finance (£m) | 613 | +10 | 2,452 | +9 | 9,842 | +7 |
| Aircraft, ships and rolling stock finance (£m) | 7 | -76 | 27 | -82 | 611 | +12 |
|
By channel: |
||||||
| Direct finance (£m) | 1,108 | +2 | 4,041 | +9 | 15,571 | +6 |
| Broker-introduced finance (£m) | 453 | +7 | 1,385 | +7 | 5,744 | +16 |
| Sales finance (£m) | 602 | +7 | 2,300 | +12 | 9,327 | +6 |
|
By product: |
||||||
| Finance leasing (£m) | 272 | 0 | 989 | +5 | 4,018 | -2 |
| Operating leasing (£m) | 470 | +4 | 1,687 | +9 | 7,107 | +8 |
| Lease/Hire purchase (£m) | 1,194 | +3 | 4,201 | +7 | 16,618 | +9 |
| Other finance (£m) | 268 | +4 | 1,080 | 0 | 4,059 | +3 |
