Figures released by the Finance & Leasing Association (FLA) show that asset finance new business grew by 9% in January by year-on-year comparison.
The plant and machinery finance and IT equipment finance sectors reported new business growth in January of 26% and 45% respectively, compared with the same month in 2018. Over the same period, commercial vehicle finance increased by 21%.
There was £210m in IT equipment finance business conducted in January, a 45% year-on-year increase. Business equipment finance fell by 2%, to £185m.
By channel, there was £1.2bn in business conducted by direct finance in January, a 10% rise by year-on-year comparison. There was also an 18% rise in broker introduced finance, to £470m. Sales finance increased by 4% year-on-year to £651m.
By product, finance leasing increased 7% year-on-year to £262m. Operating leasing decreased by 4%, to £409m. Lease and hire purchase increased 23% in the month of £1.43bn. Other forms of finance increased 9% to £371m.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The asset finance market made a great start to 2019, with strong growth across most of the major asset sectors.
“The industry is providing vital support to businesses of all sizes during a period of continued economic uncertainty. The percentage of UK investment in machinery, equipment and purchased software financed by FLA members in 2018 reached 34.5%, a decade-high.”
Former Leader of the Conservative Party and member of the House of Lords addressed over 1500 members of the Finance & Leasing Association at its Annual Dinner last month in Park Lane, London, over the potential outcomes of the Brexit scenario currently unfolding in Parliament.
Figures released by the Finance & Leasing Association (FLA) showed that asset finance business hit £32.57bn last year, a 3% rise on 2017’s figure.
In 2018, FLA members provided £137bn of new finance to UK businesses and households. Of this £33bn of finance was provided to businesses and the public sector. FLA members financed around third of UK investment in machinery, equipment and purchased software in the UK in 2018.