Credit, Collections & Insolvency News
New figures released by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew by 1% in February 2021 compared with the same month in 2020.
The plant and machinery finance and commercial vehicle finance sectors reported new business up in February by 14% and 8% respectively, compared with the same month in 2020. By contrast, the IT equipment finance and business equipment finance sectors reported falls in new business of 20% and 24% respectively, over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “In February, the asset finance market reported new business growth for the first time in more than a year. FLA members reported growth in new finance for a range of assets including agricultural equipment, manufacturing equipment and printing equipment.”
“While the FLA welcomes the measures announced in the Budget to ensure that a strong pick-up in business investment is part of the UK economic recovery, we urge the Government to extend the super-deduction allowance for expenditure on qualifying plant and machinery to include leasing. The asset finance industry has a proven track record in supporting businesses to invest in a wide range of machinery and equipment, with as much as 40% of this investment in the UK funded by FLA members.”
|
Feb 2021 |
% change on prev. year |
3 months to Feb 2021 |
% change on prev. year |
12 months to Feb 2021 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
2,229 |
1 |
7,113 |
-7 |
26,943 |
-24 |
| Total excluding high value (£m) |
2,005 |
-4 |
6,461 |
-8 |
25,154 |
-23 |
|
|
|
|
|
|
|
|
| Data Extracts:
By asset: |
|
|
|
|
|
|
| Plant and machinery finance (£m) |
585 |
14 |
1,560 |
2 |
5,930 |
-17 |
| Commercial vehicle finance (£m) |
623 |
8 |
1,885 |
-1 |
6,988 |
-23 |
| IT equipment finance (£m) |
167 |
-20 |
616 |
-24 |
2,378 |
-17 |
| Business equipment finance (£m) |
130 |
-24 |
419 |
-27 |
1,673 |
-27 |
| Car finance (£m) |
434 |
-18 |
1,747 |
-11 |
7,048 |
-29 |
| Aircraft, ships and rolling stock finance (£m) |
16 |
-11 |
76 |
-38 |
310 |
-50 |
|
By channel: |
|
|
|
|
|
|
| Direct finance (£m) |
944 |
-1 |
3,054 |
-11 |
11,993 |
-27 |
| Broker-introduced finance (£m) |
476 |
-8 |
1,409 |
-8 |
5,313 |
-22 |
| Sales finance (£m) |
585 |
-6 |
1,998 |
-4 |
7,848 |
-18 |
|
By product: |
|
|
|
|
|
|
| Finance leasing (£m) |
236 |
-27 |
808 |
-13 |
3,382 |
-22 |
| Operating leasing (£m) |
362 |
-16 |
1,387 |
-12 |
5,112 |
-27 |
| Lease/Hire purchase (£m) |
1,167 |
-1 |
3,705 |
-6 |
14,298 |
-25 |
| Other finance (£m) |
352 |
72 |
841 |
-8 |
3,304 |
-9 |