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 106% in May 2021 compared with the same month in 2020. In the first five months of 2021, new business was 26% higher than in the same period in 2020.
The commercial vehicle finance sector reported new business up by 126% in May compared with the same month in 2020. The plant and machinery and business equipment finance sectors reported new business up by 58% and 20% respectively, over the same period. By contrast, the IT equipment finance sector reported new business 29% lower in May than in the same month in 2020.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The broad-based recovery in the asset finance market continued in May as businesses have become more optimistic of a strong economic recovery. The significant growth rates reported in April and May reflect the impact on new business levels of restrictions to deal with Covid-19 during the first lockdown and we expect these to moderate in the coming months. Nevertheless, the industry is on track to return to pre-pandemic levels of new business during the course of this year.’
“Our latest research also shows a rebound in the share of UK investment in machinery, equipment and purchased software financed by FLA members which reached 37.1% in Q1 2021. We continue to urge the Government to recognise the importance of the asset finance market in supporting business investment and extend the super-deduction allowance for expenditure on qualifying plant and machinery to include leasing.”
|
May 2021 |
% change on prev. year |
3 months to May 2021 |
% change on prev. year |
12 months to May 2021 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
2,462 |
106 |
8,609 |
54 |
29,993 |
-3 |
| Total excluding high value (£m) |
2,340 |
113 |
8,145 |
53 |
28,020 |
-2 |
|
|
|
|
|
|
|
|
| Data Extracts:
By asset: |
|
|
|
|
|
|
| Plant and machinery finance (£m) |
590 |
58 |
1,940 |
40 |
6,489 |
-1 |
| Commercial vehicle finance (£m) |
657 |
126 |
2,269 |
74 |
7,950 |
3 |
| IT equipment finance (£m) |
120 |
-29 |
449 |
-20 |
2,265 |
-21 |
| Business equipment finance (£m) |
136 |
20 |
469 |
18 |
1,746 |
-17 |
| Car finance (£m) |
671 |
340 |
2,405 |
71 |
8,094 |
-2 |
| Aircraft, ships and rolling stock finance (£m) |
52 |
120 |
148 |
110 |
388 |
-21 |
|
By channel: |
|
|
|
|
|
|
| Direct finance (£m) |
958 |
85 |
3,466 |
27 |
12,733 |
-11 |
| Broker-introduced finance (£m) |
549 |
131 |
1,892 |
86 |
6,215 |
5 |
| Sales finance (£m) |
833 |
145 |
2,786 |
77 |
9,072 |
8 |
|
By product: |
|
|
|
|
|
|
| Finance leasing (£m) |
210 |
20 |
836 |
19 |
3,505 |
-8 |
| Operating leasing (£m) |
441 |
217 |
1,620 |
72 |
5,843 |
-2 |
| Lease/Hire purchase (£m) |
1,486 |
111 |
4,880 |
55 |
16,042 |
-3 |
| Other finance (£m) |
250 |
52 |
934 |
39 |
3,565 |
4 |
