New figures released 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