Credit, collections & insolvency news
New figures released by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 6% in June, compared with the same month in 2018. In the first half of 2019, new business was 8% higher than in the same period in 2018.
The commercial vehicle finance and plant and machinery finance sectors reported new business up in June by 10% and 1% respectively compared with the same month in 2018. New business reported by the business equipment finance sector fell by 1% over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “A strong performance by the asset finance market in the first half of 2019 meant the latest annual new business total reported by the industry reached a record level of more than £34 billion.”
“Asset finance continues to be popular with businesses of all sizes. Of the total new finance provided to businesses in the first six months of 2019, more than £10 billion went to SMEs – 6% higher than in the first half of 2018.”
|
Jun 2019 |
% change on prev. year |
3 months to Jun 2019 |
% change on prev. year |
12 months to Jun 2019 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
3,251 |
+6 |
9,110 |
+4 |
34,066 |
+7 |
| Total excluding high value (£m) |
2,793 |
-2 |
8,414 |
+4 |
31,633 |
+5 |
|
|
|
|
|
|
|
|
| Data Extracts:
By asset: |
|
|
|
|
|
|
| Plant and machinery finance (£m) |
617 |
+1 |
1,862 |
+6 |
7,270 |
+11 |
| Commercial vehicle finance (£m) |
838 |
+10 |
2,426 |
+14 |
8,944 |
+14 |
| IT equipment finance (£m) |
262 |
-25 |
621 |
-12 |
2,726 |
+6 |
| Business equipment finance (£m) |
221 |
-1 |
653 |
+4 |
2,659 |
+7 |
| Car finance (£m) |
822 |
-1 |
2,556 |
+1 |
8,889 |
-3 |
| Aircraft, ships and rolling stock finance (£m) |
28 |
-24 |
108 |
+68 |
428 |
+93 |
|
By channel: |
|
|
|
|
|
|
| Direct finance (£m) |
1,415 |
0 |
4,294 |
+6 |
15,971 |
+5 |
| Broker-introduced finance (£m) |
550 |
+6 |
1,708 |
+11 |
6,522 |
+15 |
| Sales finance (£m) |
828 |
-11 |
2,412 |
-3 |
9,140 |
-1 |
|
By product: |
|
|
|
|
|
|
| Finance leasing (£m) |
326 |
-12 |
1,032 |
+2 |
4,262 |
+10 |
| Operating leasing (£m) |
512 |
-4 |
1,576 |
+4 |
6,112 |
-4 |
| Lease/Hire purchase (£m) |
1,778 |
+4 |
5,262 |
+5 |
19,136 |
+10 |
| Other finance (£m) |
371 |
+16 |
836 |
+5 |
3,272 |
+12 |
