kilkelly geraldine

Figures from the UK’s Finance & Leasing Association show that asset finance new business (primarily leasing and hire purchase) grew by 7% in April, compared with the same month in 2017.

New business in the plant and machinery finance and business equipment finance sectors was up by 13% and 18% respectively, while commercial vehicle finance new business increased by 13% over the same period.

The rise means that the asset finance market has shown growth over the 12 months to April of 5%, excluding high value assets.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The recovery in asset finance new business in April was broad-based. The manufacturing, agricultural and construction equipment finance sectors each reported strong growth, with new business up by 61%, 35% and 27% respectively, compared with April 2017.”

 Apr 2018

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3 mths to

Apr 18

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12 mths to 

Apr 18

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Total FLA asset finance (£m) 2,738 +7 8,068 -1 31,650 +3
Total excluding high value (£m) 2,554 +10 7,739 +1 30,019 +5
By asset:
Plant and machinery finance (£m) 574& +13 1,717 +1 6,627 +8
Commercial vehicle finance (£m) 649 +13 1,981 +1 7,485 0
IT equipment finance (£m) 136 +14 501 -5 2,335 +4
Business equipment finance (£m) 206 +18 637 +3 2,617 +7
Car finance (£m) 891 +5 2,484 -1 9,396 +3
Aircraft, ships and rolling stock finance (£m) 15 -91 53 -83 289 -56
By channel:      
Direct finance (£m) 1,259 +3 3,864 0 14,978 +2
Broker-introduced finance (£m) 525 +24 1,554 +9 5,823 +10
Sales finance (£m) 771 +14 2,321 -1 9,218 +6
By product:      
Finance leasing (£m) 319 +11 987 +7 3,876 +6
Operating leasing (£m) 476 -20 1,584 -15 6,412 -5
Lease/Hire purchase (£m) 1,610 +16 4,591 +5 17,083 +6
Other finance (£m) 195 -15 662 -23 3,116 -7