New figures released by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 9% in January, compared with the same month last year.

The plant and machinery finance and IT equipment finance sectors reported new business growth in January of 26% and 45% respectively, compared with the same month in 2018.  Over the same period, commercial vehicle finance increased by 21%.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “The asset finance market made a great start to 2019, with strong growth across most of the major asset sectors.”

“The industry is providing vital support to businesses of all sizes during a period of continued economic uncertainty. The percentage of UK investment in machinery, equipment and purchased software financed by FLA members in 2018 reached 34.5%, a decade-high.”

Jan 2019

% change on prev. year

3 months to Jan

2019

% change on prev. year

12 months to Jan

2019

% change on prev. year

Total FLA asset finance (£m)

2,521

+9

7,859

+6

32,773

+4

Total excluding high value (£m)

2,323

+10

7,287

+6

30,681

+3

Data Extracts:

 

By asset:

Plant and machinery finance (£m)

633

+26

1,841

+21

6,978

+6

Commercial vehicle finance (£m)

580

+21

1,977

+14

8,083

+9

IT equipment finance (£m)

210

+45

715

+5

2,779

+16

Business equipment finance (£m)

185

-2

665

+6

2,656

+3

Car finance (£m)

674

+13

1,951

+4

8,971

-3

Aircraft, ships and rolling stock finance (£m)

18

-35

65

-9

302

-45

 

By channel:

Direct finance (£m)

1,202

+10

3,673

+10

15,372

+3

Broker-introduced finance (£m)

470

+18

1,520

+13

6,163

+13

Sales finance (£m)

651

+4

2,094

-3

9,145

-1

 

By product:

Finance leasing (£m)

262

+7

965

+4

4,110

+9

Operating leasing (£m)

409

-4

1,418

-5

5,963

-11

Lease/Hire purchase (£m)

1,431

+23

4,431

+18

18,421

+9

Other finance (£m)

371

+9

812

+3

3,083

-3