New figures released by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) for deals of up to £20 million fell in February by 1%, compared with the same month last year.

The plant and machinery finance and IT equipment finance sectors reported new business growth in February of 5% and 13% respectively, compared with the same month in 2017. By contrast, new business for commercial vehicles and business equipment fell by 7% and 20% respectively over the same period.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “Many asset sectors reported further growth in February despite it being a quieter month overall. The asset finance market continued to support key economic sectors with new finance for construction and agricultural equipment up by 13% and 9% respectively, compared with February 2017. The manufacturing sector also benefitted as new finance for production and process equipment was 47% higher over the same period.”

Feb 2018 % change on prev. year 3 months to Feb

2018

% change on prev. year 12 months to Feb

2018

% change on prev. year
Total FLA asset finance (£m) 2,006 -6 6,975 +1 31,718 +4
Total excluding high value (£m) 1,952 -1 6,413 -1 29,980 +5
Data Extracts:

 

By asset:

Plant and machinery finance (£m) 491 +5 1,512 +4 6,629 +10
Commercial vehicle finance (£m) 479 -7 1,532 -9 7,425 0
IT equipment finance (£m) 169 +13 594 +19 2,380 +5
Business equipment finance (£m) 170 -20 587 -2 2,554 +4
Car finance (£m) 552 +5 1,767 -1 9,517 +5
Aircraft, ships and rolling stock finance (£m) 9 -89 72 -58 472 -8
 

By channel:

Direct finance (£m) 948 -3 3,131 -3 14,968 +3
Broker-introduced finance (£m) 450 +10 1,369 +7 5,733 +11
Sales finance (£m) 554 -4 1,913 -1 9,279 +6
 

By product:

Finance leasing (£m) 262 +17 909 +5 3,848 +7
Operating leasing (£m) 390 -10 1,325 -9 6,699 0
Lease/Hire purchase (£m) 1,146 -3 3,514 -1 16,876 +6
Other finance (£m) 165 -34 788 -7 3,228 -8