Asset finance market grew by 6% in August

12th October 2021

New figures released by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew by 6% in August 2021 compared with the same month in 2020. In the eight months to August 2021, new business was 22% higher than in the same period in 2020.

The commercial vehicle finance sector reported new business up by 15% in August compared with the same month in 2020. Over the same period, the business equipment finance and plant and machinery finance sectors each reported new business growth of 12%.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The asset finance market reported its seventh consecutive month of new business growth in August, despite some sectors continuing to experience supply shortages of assets to finance.”

“Our latest research demonstrates the huge economic contribution that the asset finance industry makes by supporting businesses as they recover from the pandemic – more than 40% of UK investment in machinery, equipment and purchased software was funded by FLA members in the second quarter of 2021.”

“We, therefore, 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.”

Aug

 2021

% change on prev. year

3 months to

Aug 2021

% change on prev. year

12 months to

Aug 2021

% change on prev. year

Total FLA asset finance (£m)

2,212

6

7,644

16

31,254

9

Total excluding high value (£m)

2,134

10

7,213

19

29,357

10

Data Extracts:

 

By asset:

Plant and machinery finance (£m)

555

12

1,901

23

6,892

11

Commercial vehicle finance (£m)

622

15

2,071

26

8,413

19

IT equipment finance (£m)

136

-21

419

-37

2,021

-28

Business equipment finance (£m)

139

12

474

31

1,856

-1

Car finance (£m)

563

4

2,074

26

8,590

15

Aircraft, ships and rolling stock finance (£m)

39

82

74

-35

348

-15

 

By channel:

Direct finance (£m)

941

5

3,006

9

13,011

1

Broker-introduced finance (£m)

532

27

1,706

30

6,637

19

Sales finance (£m)

660

6

2,502

25

9,708

19

 

By product:

Finance leasing (£m)

220

-18

776

-8

3,472

-5

Operating leasing (£m)

427

8

1,495

15

6,131

10

Lease/Hire purchase (£m)

1,309

25

4,316

32

17,102

14

Other finance (£m)

188

-44

740

-26

3,351

-4