Credit, Collections & Insolvency News
In December, the IT equipment finance sector continued to report double-digit growth as new business increased by 10% compared with the same month in 2018. By contrast, the commercial vehicle finance and plant and machinery finance sectors reported falls in new business of 2% and 22% respectively, over the same period.
In 2019 as a whole, the commercial vehicle finance and plant and machinery finance sectors reported the strongest growth rates, with new business up by 9% and 5% respectively, compared with 2018.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said “The asset finance industry reached a record level of new business in 2019, despite continued weakness in business investment. Within the overall total, more than £20 billion went to SMEs to fund investment in machinery and equipment, 4% higher than in 2018.”
“Key industry sectors benefitted from using asset finance last year, with double-digit growth in new finance provided for construction and manufacturing equipment.”
|
Dec 2019 |
% change on prev. year |
3 months to Dec 2019 |
% change on prev. year |
12 months to Dec 2019 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
2,943 |
1 |
8,679 |
1 |
35,653 |
6 |
| Total excluding high value (£m) |
2,605 |
0 |
7,970 |
0 |
33,008 |
5 |
|
|
|
|
|
|
|
|
| Data Extracts:
By asset: |
|
|
|
|
|
|
| Plant and machinery finance (£m) |
530 |
-22 |
1,677 |
-9 |
7,320 |
5 |
| Commercial vehicle finance (£m) |
693 |
-2 |
2,186 |
-7 |
9,136 |
9 |
| IT equipment finance (£m) |
376 |
10 |
840 |
25 |
2,830 |
3 |
| Business equipment finance (£m) |
231 |
2 |
603 |
-9 |
2,465 |
-2 |
| Car finance (£m) |
754 |
8 |
2,382 |
4 |
9,998 |
4 |
| Aircraft, ships and rolling stock finance (£m) |
35 |
17 |
116 |
-5 |
566 |
88 |
|
By channel: |
|
|
|
|
|
|
| Direct finance (£m) |
1,279 |
-5 |
3,987 |
-1 |
16,680 |
5 |
| Broker-introduced finance (£m) |
522 |
1 |
1,689 |
1 |
6,782 |
9 |
| Sales finance (£m) |
804 |
7 |
2,294 |
1 |
9,546 |
2 |
|
By product: |
|
|
|
|
|
|
| Finance leasing (£m) |
339 |
-15 |
1,088 |
-8 |
4,378 |
3 |
| Operating leasing (£m) |
640 |
7 |
1,815 |
1 |
6,984 |
1 |
| Lease/Hire purchase (£m) |
1,458 |
-5 |
4,476 |
-4 |
19,305 |
6 |
| Other finance (£m) |
336 |
35 |
930 |
44 |
3,587 |
18 |