New figures released by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) held steady in August 2019, but was up by 6% in the twelve months to August, compared with the same period last year.

The commercial vehicle finance, and plant and machinery finance sectors reported new business up in August by 11% and 1% respectively, compared with the same month in 2018.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “August saw further double-digit growth in new finance provided for commercial vehicles as businesses were keen to invest in the newest technology.”

“The asset finance market reported 7% new business growth in the first eight months of 2019.  The strong performance of the industry so far this year meant it funded over 41% of investment in machinery, equipment and purchased software in Q2 2019, an eleven-year high.”

Aug 2019

% change on prev. year

3 months to Aug

2019

% change on prev. year

12 months to Aug

2019

% change on prev. year

Total FLA asset finance (£m)

2,452

0

8,778

+5

34,311

+6

Total excluding high value (£m)

2,321

+1

7,946

+2

31,820

+5

Data Extracts:

 

By asset:

Plant and machinery finance (£m)

585

+1

1,842

+5

7,343

+11

Commercial vehicle finance (£m)

667

+11

2,256

+11

9,110

+14

IT equipment finance (£m)

166

-16

704

-15

2,692

0

Business equipment finance (£m)

211

-1

626

-4

2,622

+4

Car finance (£m)

572

-1

2,269

+2

8,935

-2

Aircraft, ships and rolling stock finance (£m)

19

+95

173

+126

533

+115

 

By channel:

Direct finance (£m)

1,160

0

4,042

+4

16,086

+6

Broker-introduced finance (£m)

513

+6

1,627

+5

6,574

+12

Sales finance (£m)

648

0

2,276

-3

9,160

-2

 

By product:

Finance leasing (£m)

310

+4

987

+2

4,321

+11

Operating leasing (£m)

430

-2

1,478

-2

6,098

-4

Lease/Hire purchase (£m)

1,373

+3

4,927

+7

19,408

+10

Other finance (£m)

270

+13

954

+3

3,252

+6