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) grew in November 2021 by 5% compared with the same month in 2020. In the eleven months to November 2021, new business was 16% higher than in the same period in 2020.
The plant and machinery finance and commercial vehicle finance sectors reported new business up in November by 35% and 7% respectively, compared with the same month in 2020. By contrast, the business equipment finance and IT equipment finance sectors reported falls in new business of 14% and 50% respectively, over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The asset finance market returned to growth in November with new finance provided to SMEs up by 21% compared with the same month in 2020. New business in 2021 as a whole is likely to be £31 billion, 13% lower than the pre-pandemic peak as disruption caused by equipment shortages and the broader economic impacts of new waves of Covid-19 slow the rate of recovery.”
“The industry has remained resilient during the pandemic and continues to support businesses of all sizes to invest in a more sustainable future. Our latest research suggests that FLA members financed almost 40% of UK investment in machinery, equipment and purchased software in Q3 2021, the highest rate since Q2 2019.”
“We continue to urge the Government to extend the super-deduction allowance for expenditure on qualifying plant and machinery to include leasing so the industry can support more businesses to recover and grow.”
|
Nov 2021 |
% change on prev. year |
3 months to Nov 2021 |
% change on prev. year |
12 months to Nov 2021 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
2,517 |
5 |
7,816 |
2 |
31,376 |
14 |
| Total excluding high value (£m) |
2,362 |
3 |
7,318 |
0 |
29,330 |
14 |
|
|
|
|
|
|
|
|
| Data Extracts:
By asset: |
|
|
|
|
|
|
| Plant and machinery finance (£m) |
624 |
35 |
1,813 |
25 |
7,250 |
22 |
| Commercial vehicle finance (£m) |
747 |
7 |
2,151 |
0 |
8,418 |
20 |
| IT equipment finance (£m) |
77 |
-50 |
350 |
-35 |
1,835 |
-29 |
| Business equipment finance (£m) |
137 |
-14 |
485 |
-2 |
1,845 |
1 |
| Car finance (£m) |
643 |
-6 |
2,141 |
-5 |
8,478 |
16 |
| Aircraft, ships and rolling stock finance (£m) |
10 |
2 |
48 |
-6 |
346 |
-3 |
|
By channel: |
|
|
|
|
|
|
| Direct finance (£m) |
915 |
-15 |
2,932 |
-15 |
12,498 |
1 |
| Broker-introduced finance (£m) |
588 |
16 |
1,790 |
12 |
6,836 |
25 |
| Sales finance (£m) |
859 |
22 |
2,597 |
12 |
9,996 |
25 |
|
By product: |
|
|
|
|
|
|
| Finance leasing (£m) |
241 |
-15 |
788 |
-23 |
3,239 |
-7 |
| Operating leasing (£m) |
477 |
1 |
1,584 |
6 |
6,220 |
17 |
| Lease/Hire purchase (£m) |
1,494 |
13 |
4,371 |
4 |
17,286 |
19 |
| Other finance (£m) |
195 |
-19 |
723 |
-12 |
3,254 |
-5 |