Kilkelly geraldine 400

Total asset finance new business (primarily leasing and hire purchase) grew by 6% in the 11 months to the end of November 2019, new research from the Finance and Leasing Association reveals.

During November, business remained static during November compared to the same period last year as companies prepared for a general election in December and clarity on which government would oversee Brexit strategy.

The IT equipment finance sector reported a second consecutive month of strong double-digit growth in November last year as new business increased by 41% compared with the same month in 2018.

By contrast, the commercial vehicle finance and plant and machinery finance sectors reported falls in new business of 7% and 6% respectively, over the same period.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “Increased Brexit-related uncertainty hit business confidence in the final quarter of 2019.

“However, the asset finance market continued to report growth in the eleven months to November and, within the overall total, new lending to SMEs grew by 5%.

“Our latest research shows that the percentage of investment in machinery, equipment and purchased software funded by FLA members in the 12 months to September 2019 was 37.8%, the highest for almost 11 years.”

 Nov 2019 

% change on

prev. year

3 months to

Nov 2019

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prev. year

12 months to

Nov 2019

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prev. year

Total FLA asset finance (£m)  2,583   0 8,466  34,541 
Total excluding high value (£m) 2,394  -4 7,877  31,947 
By asset:
Plant and machinery finance (£m)  532  -6  1,771  7,453  10 
Commercial vehicle finance (£m)  700  -7  2,195  -6  8,982 
IT equipment finance (£m)  229  41  780  15  2,803 
Business equipment finance (£m)  174  -15  551  -10  2,480  -1
Car finance (£m)  663  2,179  9,014 
Aircraft, ships and rolling stock finance (£m)  31  82  100  -4 528  72 
By channel:       
Direct finance (£m)  1,209  -1  3,813  16,049 
Broker-introduced finance (£m) 494  -10  1,684  6,633  10 
Sales finance (£m) 692  -3  2,379  5 9,265  -1 
By product:
Finance leasing (£m) 297  -8  1,121  -6  4,217 
Operating leasing (£m) 503  -1  1,527  -1  6,087  -1 
Lease/Hire purchase (£m) 1,398  -5  4,582  -1  19,367 
Other finance (£m)  261  31  881  40  3,526  15 

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