New figures released by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 7% in October, compared with the same month last year.
The plant and machinery finance and business equipment finance sectors reported new business up in October by 6% and 13% respectively, compared with the same month in 2016, while new finance for IT equipment was up by 22% over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “Growth in the asset finance market was broad-based in October, with most of the main asset sectors reporting increases in new business.”
“The industry is on course to report a record level of annual new business in 2017 of around £32 billion.”
| Oct 2017 | % change on prev. year | 3 months to Oct
2017 |
% change on prev. year | 12 months to Oct
2017 |
% change on prev. year | |
| Total FLA asset finance (£m) | 2,672 | +7 | 7,625 | +1 | 31,771 | +5 |
| Total excluding high value (£m) | 2,665 | +9 | 7,568 | +3 | 30,772 | +7 |
| Data Extracts:
By asset: |
||||||
| Plant and machinery finance (£m) | 489 | +6 | 1,485 | +1 | 6,518 | +12 |
| Commercial vehicle finance (£m) | 660 | +5 | 1,883 | 0 | 7,520 | +2 |
| IT equipment finance (£m) | 195 | +22 | 579 | +4 | 2,248 | 0 |
| Business equipment finance (£m) | 196 | +13 | 603 | +8 | 2,585 | +12 |
| Car finance (£m) | 911 | +8 | 2,413 | +2 | 9,833 | +6 |
| Aircraft, ships and rolling stock finance (£m) | 17 | -64 | 44 | -52 | 586 | +10 |
|
By channel: |
||||||
| Direct finance (£m) | 1,395 | +6 | 3,786 | +1 | 15,585 | +4 |
| Broker-introduced finance (£m) | 505 | +14 | 1,478 | +5 | 5,785 | +13 |
| Sales finance (£m) | 765 | +11 | 2,304 | +7 | 9,403 | +7 |
|
By product: |
||||||
| Finance leasing (£m) | 328 | +5 | 945 | +1 | 4,005 | -3 |
| Operating leasing (£m) | 553 | -1 | 1,678 | -2 | 7,057 | +6 |
| Lease/Hire purchase (£m) | 1,519 | +14 | 4,148 | +5 | 16,765 | +10 |
| Other finance (£m) | 271 | -5 | 855 | -11 | 3,944 | -5 |
