New figures released by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) in November was at a similar level to the same month in 2017.

The plant and machinery finance and business equipment finance sectors reported new business up in November by 9% and 8% respectively, compared with the same month in 2017.  By contrast, new finance for business cars and IT equipment fell by 6% and 32% over the same period.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “The asset finance market’s performance in November means the industry remains on track to report a record level of new business in 2018 as a whole.”

“The percentage of UK investment in machinery, equipment and purchased software financed by FLA members reached 32.2% in the twelve months to September 2018, a nine-year high.”

Nov 2018

% change on prev. year

3 months to Nov

2018

% change on prev. year

12 months to Nov

2018

% change on prev. year

Total FLA asset finance (£m)

2,540

0

8,176

+3

32,315

+3

Total excluding high value (£m)

2,452

0

7,669

-1

30,221

+2

Data Extracts:

 

By asset:

Plant and machinery finance (£m)

541

+9

1,637

+9

6,644

+2

Commercial vehicle finance (£m)

723

+4

2,242

+8

7,877

+4

IT equipment finance (£m)

161

-32

674

+2

2,665

+16

Business equipment finance (£m)

232

+8

690

+10

2,631

+3

Car finance (£m)

661

-6

2,111

-14

8,874

-5

Aircraft, ships and rolling stock finance (£m)

17

+114

105

+134

318

-45

 

By channel:

Direct finance (£m)

1,200

+5

3,770

+1

15,101

0

Broker-introduced finance (£m)

545

+8

1,640

+12

6,042

+11

Sales finance (£m)

707

-11

2,260

-10

9,079

-2

 

By product:

Finance leasing (£m)

320

+10

1,189

+24

4,103

+9

Operating leasing (£m)

496

-15

1,500

-14

5,975

-12

Lease/Hire purchase (£m)

1,462

+5

4,605

+5

17,776

+6

Other finance (£m)

191

-1

619

-4

3,054

-4

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