Credit, Collections & Insolvency News
New figures released by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in April 2024 by 31% compared with the same month in 2023. In the first four months of 2024, new business was 7% higher than in the same period in 2023.
The business new car finance and commercial vehicle finance sectors reported new business up in April by 35% and 45% respectively, compared with the same month in 2023. New business in the plant and machinery finance and business equipment finance sectors increased by 9% and 4% respectively, over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The strong performance by the asset finance market in April can in part be attributed to a shorter working month in April 2023 due to the timing of Easter. The vehicle finance sectors have continued to drive growth this year with new business up by 15% in the first four months of 2024. By contrast, the machinery and equipment finance sectors reported new business 9% lower over the same period.
“Key to any new Government initiatives to boost long-term economic growth will be increasing business investment. The asset finance industry which has funded as much as 40% of UK investment in machinery, equipment and vehicles will play a pivotal role in supporting the drive among businesses of all sizes to achieve growth and higher productivity sustainably.”
|
Apr 2024 |
% change on prev. year |
3 months to Apr 2024 |
% change on prev. year |
12 months to Apr 2024 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
3,782 |
31 |
10,542 |
7 |
39,431 |
10 |
| Total excluding high value (£m) |
3,470 |
27 |
9,992 |
8 |
37,602 |
10 |
|
|
|
|
|
|
|
|
| Data Extracts:
By asset: |
|
|
|
|
|
|
| Plant and machinery finance (£m) |
697 |
9 |
2,025 |
-12 |
7,419 |
-11 |
| Commercial vehicle finance (£m) |
997 |
45 |
2,916 |
14 |
10,338 |
11 |
| IT equipment finance (£m) |
105 |
33 |
296 |
-7 |
1,178 |
-14 |
| Business equipment finance (£m) |
149 |
4 |
441 |
-10 |
1,829 |
-6 |
| Car finance (£m) |
1,247 |
31 |
3,558 |
15 |
13,806 |
28 |
| Aircraft, ships and rolling stock finance (£m) |
53 |
82 |
113 |
48 |
351 |
13 |
|
By channel: |
|
|
|
|
|
|
| Direct finance (£m) |
1,615 |
32 |
4,525 |
10 |
17,332 |
14 |
| Broker-introduced finance (£m) |
752 |
16 |
2,246 |
2 |
8,347 |
3 |
| Sales finance (£m) |
1,103 |
29 |
3,221 |
8 |
11,924 |
10 |
|
By product: |
|
|
|
|
|
|
| Finance leasing (£m) |
244 |
5 |
787 |
-6 |
3,415 |
0 |
| Operating leasing (£m) |
895 |
43 |
2,558 |
18 |
9,799 |
33 |
| Lease/Hire purchase (£m) |
1,981 |
27 |
5,700 |
5 |
20,622 |
3 |
| Other finance (£m) |
569 |
68 |
1,169 |
16 |
4,284 |
15 |