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) fell in June 2024 by 7% compared with the same month in 2023. In the first half of 2024, new business was 5% higher than in the same period in 2023.
The business new car finance and commercial vehicle finance sectors reported falls in new business in June of 11% and 12% respectively, compared with the same month in 2023. New business in the plant and machinery finance and business equipment finance sectors fell by 12% and 23% respectively.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “Several factors contributed to the reduction in asset finance new business in June including companies delaying investment plans until after the General Election and in anticipation of a cut in Bank Rate, as well as slightly fewer working days this June than in the same month in 2023.
“The asset finance market reported new business growth of 9% in Q2 2024 as a whole, and a higher level of new business in the first half of the year, which was supported by continued growth in the vehicle finance sectors, offset in part by lower levels of new business in the machinery and equipment finance sectors.
“Encouraging more private sector investment will be crucial to delivering higher economic growth. The asset finance industry plays a key role in helping businesses of all sizes to fund this investment with FLA members financing as much as 40% of all UK investment in vehicles machinery and equipment.”
|
Jun 2024 |
% change on prev. year |
3 months to Jun 2024 |
% change on prev. year |
12 months to Jun 2024 |
% change on prev. year |
|
|
Total FLA asset finance (£m) |
3,276 |
-7 |
10,456 |
9 |
39,437 |
7 |
|
Total excluding high value (£m) |
3,076 |
-10 |
9,792 |
7 |
37,532 |
7 |
|
|
|
|
|
|
|
|
|
Data Extracts:
By asset: |
|
|
|
|
|
|
|
Plant and machinery finance (£m) |
615 |
-12 |
1,994 |
0 |
7,364 |
-11 |
|
Commercial vehicle finance (£m) |
837 |
-12 |
2,757 |
13 |
10,343 |
8 |
|
IT equipment finance (£m) |
110 |
8 |
354 |
42 |
1,248 |
-6 |
|
Business equipment finance (£m) |
136 |
-23 |
413 |
-11 |
1,772 |
-7 |
|
Car finance (£m) |
1,130 |
-8 |
3,506 |
9 |
13,789 |
20 |
|
Aircraft, ships and rolling stock finance (£m) |
43 |
-5 |
114 |
23 |
348 |
8 |
|
By channel: |
|
|
|
|
|
|
|
Direct finance (£m) |
1,337 |
-15 |
4,353 |
5 |
17,144 |
9 |
|
Broker-introduced finance (£m) |
726 |
-3 |
2,282 |
9 |
8,420 |
2 |
|
Sales finance (£m) |
1,008 |
-8 |
3,157 |
10 |
11,963 |
8 |
|
By product: |
|
|
|
|
|
|
|
Finance leasing (£m) |
306 |
-11 |
812 |
1 |
3,413 |
-1 |
|
Operating leasing (£m) |
854 |
1 |
2,657 |
21 |
9,981 |
25 |
|
Lease/Hire purchase (£m) |
1,694 |
-12 |
5,436 |
4 |
20,431 |
1 |
|
Other finance (£m) |
266 |
-10 |
1,160 |
20 |
4,246 |
13 |