New figures released by the Finance & Leasing Association (FLA) has show that total asset finance new business (primarily leasing and hire purchase) grew by 3% in July 2021 compared with the same month in 2020. In the first seven months of 2021, new business was 24% higher than in the same period in 2020.

The business equipment finance and plant and machinery finance sectors reported new business up in July by 47% and 10% respectively, compared with the same month in 2020. Over the same period, new business in the IT equipment finance sector fell by 51%.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “Overall growth in the asset finance market slowed in July, but many asset sectors and new business channels continued to report robust recoveries.  New finance provided for agriculture and construction equipment each grew by 24% in July and annual new business in the broker and vendor finance channels has almost reached pre-pandemic levels.”

“The current shortage of assets available to finance – particularly in the automotive, machinery and electronic sectors – is weighing on the recovery of the industry and the wider economy.  Nevertheless, the rebound of the asset finance market so far this year demonstrates its underlying strength and points to further growth in the year ahead.”

“FLA members want to do even more to support businesses invest in the cleanest and most efficient plant and machinery.  We, therefore, continue to urge the Government to extend the super-deduction allowance for expenditure on qualifying plant and machinery to include leasing.”

Jul

 2021

% change on prev. year

3 months to

Jul 2021

% change on prev. year

12 months to

Jul 2021

% change on prev. year

Total FLA asset finance (£m)

2,564

3

7,915

39

31,026

7

Total excluding high value (£m)

2,352

3

7,440

42

29,069

7

Data Extracts:

 

By asset:

Plant and machinery finance (£m)

644

10

1,930

36

6,817

8

Commercial vehicle finance (£m)

723

15

2,128

52

8,313

15

IT equipment finance (£m)

130

-51

404

-39

2,056

-27

Business equipment finance (£m)

175

47

468

34

1,841

-6

Car finance (£m)

655

-1

2,189

73

8,502

13

Aircraft, ships and rolling stock finance (£m)

14

-77

86

-25

331

-19

 

By channel:

Direct finance (£m)

920

-12

3,032

27

12,943

-2

Broker-introduced finance (£m)

564

14

1,736

53

6,526

15

Sales finance (£m)

868

18

2,673

56

9,599

17

 

By product:

Finance leasing (£m)

269

-12

795

6

3,518

-5

Operating leasing (£m)

475

-7

1,525

46

6,025

6

Lease/Hire purchase (£m)

1,396

14

4,475

52

16,832

10

Other finance (£m)

306

-28

798

-4

3,487

2