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 grew by 4% in January, compared with the same month last year. Including high-value deals, new business increased by 3% over the same period.

The plant and machinery finance and business equipment finance sectors each reported new business up in January by 8% compared with the same month in 2017, while new finance for commercial vehicles fell by 4% over the same period.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “The asset finance market made a positive start to 2018 with further solid growth in new finance for plant and machinery and business equipment. In particular, new business for agricultural equipment in January was 21% higher than in the same month in 2017. We expect asset finance new business growth in 2018 as a whole to be at a similar rate to 2017.”

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

2018

% change on prev. year 12 months to Jan

2018

% change on prev. year
Total FLA asset finance (£m) 2,337 +3 7,523 +3 31,842 +5
Total excluding high value (£m) 2,131 +4 6,926 +2 30,038 +6
Data Extracts:

 

By asset:

Plant and machinery finance (£m) 509 +8 1,520 +4 6,654 +11
Commercial vehicle finance (£m) 480 -4 1,748 -4 7,462 0
IT equipment finance (£m) 133 +29 663 +14 2,315 +3
Business equipment finance (£m) 191 +8 633 +5 2,596 +7
Car finance (£m) 608 -2 1,928 -2 9,493 +4
Aircraft, ships and rolling stock finance (£m) 28 -14 71 -36 545 +24
 

By channel:

Direct finance (£m) 1,066 0 3,326 -3 15,047 +3
Broker-introduced finance (£m) 442 +8 1,444 +12 5,690 +11
Sales finance (£m) 622 +10 2,155 +3 9,301 +7
 

By product:

Finance leasing (£m) 246 0 939 -1 3,809 +6
Operating leasing (£m) 425 -2 1,519 -3 6,744 +1
Lease/Hire purchase (£m) 1,166 0 3,763 0 16,907 +6
Other finance (£m) 359 +10 826 +7 3,313 -3