New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 5% in April, compared with the same month last year.
The plant and machinery finance sector reported new business up in April by 9%, while new finance for business cars grew by 8% over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “Asset finance new business increased by 8% in the first four months of 2017, in line with our expectations of single-digit growth for the year overall.
“The plant and machinery finance sector returned another strong performance in April, with new finance for agricultural equipment and construction equipment up by 17% and 8% respectively.”
| Apr 2017 | % change on prev. year | 3 months to Apr
2017 |
% change on prev. year | 12 months to Apr
2017 |
% change on prev. year | |
| Total FLA asset finance (£m) | 2,677 | +5 | 8,359 | +6 | 30,952 | +6 |
| Total excluding high value (£m) | 2,486 | -3 | 8,006 | +6 | 29,624 | +6 |
| Data Extracts:
By asset: |
||||||
| Plant and machinery finance (£m) | 511 | +9 | 1,734 | +13 | 6,161 | +6 |
| Commercial vehicle finance (£m) | 577 | -6 | 1,962 | +4 | 7,437 | +6 |
| IT equipment finance (£m) | 122 | -12 | 483 | -8 | 2,222 | -3 |
| Business equipment finance (£m) | 177 | -10 | 619 | +4 | 2,472 | +18 |
| Car finance (£m) | 974 | +8 | 2,696 | +7 | 9,485 | +4 |
| Aircraft, ships and rolling stock finance (£m) | 174 | +192 | 310 | +243 | 662 | +52 |
|
By channel: |
||||||
| Direct finance (£m) | 1,329 | -4 | 4,055 | +6 | 15,107 | +5 |
| Broker-introduced finance (£m) | 431 | 0 | 1,473 | +17 | 5,440 | +14 |
| Sales finance (£m) | 726 | -2 | 2,478 | +2 | 9,077 | +1 |
|
By product: |
||||||
| Finance leasing (£m) | 297 | -7 | 943 | -4 | 3,986 | -1 |
| Operating leasing (£m) | 707 | +23 | 2,047 | +17 | 6,923 | +6 |
| Lease/Hire purchase (£m) | 1,410 | +2 | 4,395 | +9 | 16,084 | +8 |
| Other finance (£m) | 262 | -8 | 973 | -14 | 3,960 | +7 |