Asset Finance continues to grow
The latest figures released by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 12% in September, compared with the same month last year – the thirty-sixth consecutive month of growth. In Q3 2016, new business was also up by 12% compared with the same quarter in 2015.
The commercial vehicle finance and business equipment finance sectors reported new business up in September by 5% and 29% respectively, while plant and machinery finance new business increased by 16% over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “The first post-EU referendum quarterly results saw the asset finance market record its strongest rate of new business growth for more than a year. Encouragingly, September saw the second consecutive month of growth in new finance provided for plant and machinery. In the third quarter as a whole, new finance for agricultural equipment and construction equipment grew by 16% and 4% respectively, compared with Q3 2015.”