Asset finance increases by 16% in May

Latest figures released by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew in May by 16% compared with the same month last year.

The plant and machinery finance and business equipment finance sectors reported new business up in May by 28% and 31% respectively, compared with the same month in 2016, while new finance for commercial vehicles was up by 3% over the same period.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: “Asset finance new business grew by 9% in the first five months of 2017, as the industry continued to help businesses invest.

“The growth in plant and machinery finance new business so far in 2017 has been broad-based, with increases in new finance provided for construction equipment, agricultural equipment, forklift trucks, and production and process plant over that period.”

	May 2017	% change on prev. year	3 months to May 2017	% change on prev. year	12 months to May 2017	% change on prev. year
Total FLA asset finance (£m)	2,676	+16	8,890	+8	31,321	+7
Total excluding high value (£m)	2,600	+15	8,538	+9	29,956	+6
Data Extracts:   By asset:
Plant and machinery finance (£m)	572	+28	1,796	+18	6,285	+9
Commercial vehicle finance (£m)	609	+3	2,051	+4	7,456	+4
IT equipment finance (£m)	175	-7	555	-6	2,208	-5
Business equipment finance (£m)	231	+31	638	+6	2,527	+18
Car finance (£m)	841	+15	2,981	+11	9,593	+6
Aircraft, ships and rolling stock finance (£m)	100	+222	327	+192	731	+62
By channel:
Direct finance (£m)	1,302	+10	4,303	+7	15,229	+5
Broker-introduced finance (£m)	527	+26	1,573	+19	5,550	+15
Sales finance (£m)	771	+15	2,662	+6	9,178	+2
By product:
Finance leasing (£m)	315	0	1,027	0	3,986	-3
Operating leasing (£m)	574	+8	2,153	+15	6,966	+6
Lease/Hire purchase (£m)	1,476	+19	4,706	+12	16,322	+9
Other finance (£m)	311	+39	1,004	-11	4,047	+11