New figures released by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 7% in April, compared with the same month in 2017. New business in the plant and machinery finance and business equipment finance sectors was up by 13% and 18% respectively, while commercial vehicle finance new business increased by 13% over the same period.
Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “The recovery in asset finance new business in April was broad-based. The manufacturing, agricultural and construction equipment finance sectors each reported strong growth, with new business up by 61%, 35% and 27% respectively, compared with April 2017.”
| Apr 2018 | % change on prev. year | 3 months to Apr
2018 |
% change on prev. year | 12 months to Apr
2018 |
% change on prev. year | |
| Total FLA asset finance (£m) | 2,738 | +7 | 8,068 | -1 | 31,650 | +3 |
| Total excluding high value (£m) | 2,554 | +10 | 7,739 | +1 | 30,019 | +5 |
| Data Extracts: By asset: | ||||||
| Plant and machinery finance (£m) | 574 | +13 | 1,717 | +1 | 6,627 | +8 |
| Commercial vehicle finance (£m) | 649 | +13 | 1,981 | +1 | 7,485 | 0 |
| IT equipment finance (£m) | 136 | +14 | 501 | -5 | 2,335 | +4 |
| Business equipment finance (£m) | 206 | +18 | 637 | +3 | 2,617 | +7 |
| Car finance (£m) | 891 | +5 | 2,484 | -1 | 9,396 | +3 |
| Aircraft, ships and rolling stock finance (£m) | 15 | -91 | 53 | -83 | 289 | -56 |
| By channel: | ||||||
| Direct finance (£m) | 1,259 | +3 | 3,864 | 0 | 14,978 | +2 |
| Broker-introduced finance (£m) | 525 | +24 | 1,554 | +9 | 5,823 | +10 |
| Sales finance (£m) | 771 | +14 | 2,321 | -1 | 9,218 | +6 |
| By product: | ||||||
| Finance leasing (£m) | 319 | +11 | 987 | +7 | 3,876 | +6 |
| Operating leasing (£m) | 476 | -20 | 1,584 | -15 | 6,412 | -5 |
| Lease/Hire purchase (£m) | 1,610 | +16 | 4,591 | +5 | 17,083 | +6 |
| Other finance (£m) | 195 | -15 | 662 | -23 | 3,116 | -7 |