Figures released by the Finance & Leasing Association (FLA) have shown that asset finance new business in November was at a similar level to the same month in 2017, though with falls in financing for business cars and IT equipment.
The plant and machinery finance and business equipment finance sectors reported new business up in November by 9% and 8% respectively, compared with the same month in 2017. By contrast, new finance for business cars and IT equipment fell by 6% and 32% over the same period.
Commenting on the figures, Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The asset finance market’s performance in November means the industry remains on track to report a record level of new business in 2018 as a whole.
“The percentage of UK investment in machinery, equipment and purchased software financed by FLA members reached 32.2% in the twelve months to September 2018, a nine-year high.”
In 2017, FLA members provided £128bn of new finance to UK businesses and households. £32 bn of finance was provided to businesses and the public sector. FLA members financed a third of UK investment in machinery, equipment and purchased software in the UK in 2017.
In the November 2018 results, total asset finance recorded for the month was £2.54bn, with no change in year-on-year results. By asset, business equipment finance recorded an 8% year-on-year rise to £232m.
By channel, the £1.2bn of direct finance recorded was a 5% year-on year increase for November. Broker-introduced finance was up 8% to £545m, and sales finance was down 11% to £707m.
By product, operating lease was down 15%, to £496m. Lease and hire purchase was up 5% to £1.46bn and finance leasing was up 10% to £320m. Other forms of finance were down 1% to £191m.
Figures released by the FLA for October showed that asset finance new business (primarily leasing and hire purchase) grew by 9%, compared with the same month in 2017.