kilkelly geraldine

New figures released by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 10% in May, compared with the same month in 2017.

New finance for plant and machinery grew in May by 4% compared with the same month in 2017, while the commercial vehicle finance sector reported new business up by 13% over the same period.

Geraldine Kilkelly, head of research and chief economist, said: “The industry provided further support to the construction, manufacturing and agricultural sectors, with new finance for equipment in these sectors up by 6%, 11% and 22% respectively, compared with May 2017.”

Year-on-year UK asset finance performance by category

UK May 2018 finance

UK asset finance market May 2018

 May 2018

% change on

prev yr

3 mths to

May 18

% change on

prev yr

12 mths to

May 18

% change on

prev yr

Total FLA asset finance (£m) 2,921 +10 8,984 +3 31,926 +3
Total excluding high value (£m) 2,637 +4 8,421 +3 30,127 +4
By asset:      
Plant and machinery finance (£m)

586 

+4 1,813 +1 6,651 +7
Commercial vehicle finance (£m) 684 +13 2,182 +6 7,561 +1
IT equipment finance (£m) 174 +1 506 -8 2,336 +5
Business equipment finance (£m) 201 -13 666 +5 2,588 +4
Car finance (£m) 870 +6 2,802 +0 9,445 +2
Aircraft, ships and rolling stock finance (£m) 15 -85 63 -81 204 -72
By channel:      
Direct finance (£m)
1,334 +5 4,245 +3 15,038 +1
Broker-introduced finance (£m) 526 +2 1,630 +6 5,831 +7
Sales finance (£m) 777 +5 2,546 +1 9,257 +6
By product:      
Finance leasing (£m) 312 +3 1,038 +4 3,886 +6
Operating leasing (£m) 472 -14 1,663 -16 6,335 -7
Lease/Hire purchase (£m) 1,667 +13 5,113 +9 17,273 +5
Other finance (£m) 302 +9 802 -9 3,142 -9

Source: FLA