Double digit growth continues in asset finance

Figures released by the Finance & Leasing Association (FLA) show growth of 10% in asset finance new business during April, compared with the same month last year.

The commercial vehicle finance and plant and machinery finance sectors reported new business increases of 25% and 27% respectively in the same period.  IT equipment finance, which is often quarterly-end driven, showed a fall of 41% in new business following a 29% increase in the previous month.

Commenting, Geraldine Kilkelly, Head of Research and Chief Economist, said:

“The figures show another strong performance from the asset finance market, making April the seventh consecutive month of growth. In the first four months of 2014, new business was 12% higher than in the same period last year.

“Optimism in the market was evident in our Q2 Confidence Survey of members.  More than half of the respondents expected new business growth in excess of 10% in each of the direct, broker and sales finance channels over the next year.”

 

Apr 2014

% change on Apr 2013

3 months to Apr 2014

% change on prev. year

12 months to Apr 2014

% change on prev. year

Total FLA asset finance (£m)

2,056

+10

6,050

+13

23,260

+8

Total leasing and hire purchase excluding high value (£m)

1,977

+7

5,925

+14

22,564

+8

Data Extracts:
Plant and machinery finance (£m)

435

+27

1,332

+25

4,778

+13

Commercial vehicle finance (£m)

479

+25

1,450

+20

5,523

+18

IT equipment finance (£m)

77

-41

312

-7

1,521

+10

Business equipment finance (£m)

167

-12

507

+7

1,992

+7

Car finance (£m)

669

-2

1,847

+8

6,841

0

Aircraft, ships and rolling stock finance (£m)

18

-51

50

-47

254

-48

Article courtesy of the FLA For further information please visit the FLA site at www.fla.org.uk