Buoyant July for asset finance market

The asset finance market enjoyed its best month of the year so far in July, with figures from the Finance & Leasing Association (FLA) showing that new business was up 23%.

In a strong performance, growth was robust across most asset sectors, with business new car finance and plant and machinery finance increasing by 35% and 30% respectively, compared with July 2013.

Commenting on the figures, Geraldine Kilkelly, the FLA’s head of research and chief economist, said: “The July figures show clearly the active role asset finance is playing in helping UK businesses invest. All asset finance channels showed strong growth in July, including the broker finance market which reported a record level of new business.”

Over the period commercial vehicle finance rose by 18%, IT equipment finance by 20%, business equipment finance by 21%, and plant and machinery by 30%. Only the aircraft, ships and rolling stock finance sector continued to decline, down by 18% compared to July 2013.

Kilkelly said: “The industry is also optimistic about further growth in the coming months. Our latest asset finance confidence survey shows that FLA members expect growth of about 10% in new business over the next twelve months.”