Kilkelly geraldine 400

Asset finance new business (primarily leasing and hire purchase) grew by 15% in February compared to the same month last year, according to new figures from the Finance & Leasing Association (FLA).

The commercial vehicle finance and IT equipment finance sectors reported new business growth in February of 36% and 10% respectively, compared with the same month in 2018, while business equipment finance grew by 8% over the same period.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “Over the last three months, the asset finance market has reported double-digit growth in new finance provided to both SMEs and larger businesses for investment in a broad range of machinery and equipment.

“Asset finance has proved particularly popular with SMEs, achieving the highest application success and satisfaction rates in 2018 compared with other external finance products.”

 Feb 2019

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Total FLA asset finance (£m) 2,293 +15 7,602 +10 33,078 +5
Total excluding high value (£m) 2,138 +10 6,961 +9 30,879 +4
By asset:      
Plant and machinery finance (£m 500 +1 1,794 +19 6,894 +6
Commercial vehicle finance (£m) 658 +36 1,911 +24 8,257 +12
IT equipment finance (£m) 190 +10 742 +21 2,797 +16
Business equipment finance (£m) 181 +8 613 +6 2,669 +6
Car finance (£m)  542 +0 1,832 +6 8,973 -4
Aircraft, ships and rolling stock finance (£m 18 +208 66 -5 314 -33
By channel:      
Direct finance (£m) 1,015 +6 3,485 +10 15,434 +3
Broker-introduced finance (£m) 515 +21 1,487 +16 6,251 +14
Sales finance (£m) 608 +9 1,989 +3 9,194 -1
By product:      
Finance leasing (£m) 350 +34 993 +10 4,198 +10
Operating leasing (£m) 395 0 1,315 -1 5,965 -10
Lease/Hire purchase (£m) 1,319 +15 4,282 +22 18,598 +11
Other finance (£m) 152 +2 772 +4 3,087 0