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Equipment Finance News UK asset finance market breaks records Published: 9th February 2018 Share Asset finance new business reached record levels in 2017 following growth of 5% during the year, according to the latest figures from the UK’s Finance & Leasing Association (FLA). The sector achieved its seventh consecutive year of growth, with new business levels reaching almost £32 billion last year. The plant and machinery finance and commercial vehicle finance sectors reported new business up in 2017 by 12% and 1% respectively, compared with 2016, while new finance for business equipment was up by 7% over the same period. Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The asset finance industry reported a record level of new business of almost £32 billion in 2017, despite challenging economic conditions and subdued business investment growth. “The latest figures also reveal that asset finance is a vital source of funding for SMEs when investing in business equipment and machinery. Of the total asset finance new business in 2017, £18.6 billion went to SMEs – 12% higher than in 2016.” During 2017, FLA members provided £128 billion of new finance to UK businesses and households, with £32 billion of finance provided to businesses and the public sector. FLA members financed more than one-third of UK investment in machinery, equipment and purchased software in the UK last year. UK asset finance market 2017 Dec17 % change on prev yr 3 mths to Dec 17 % change on prev yr 12 mths to Dec 17 % change on prev yr Total FLA asset finance (£m) 2,632 +4 +4 7,861 31,769 +5 Total excluding high value (£m) 2,483 -1 -1 7,695 30,752 +6 By asset: Plant and machinery finance (£m) 512 +1 1,515 +5 6,617 +12 Commercial vehicle finance (£m) 572 -14 1,934 -1 7,480 +1 IT equipment finance (£m) 293 +19 726 +14 2,285 +2 Business equipment finance (£m) 227 +6 624 +6 2,581 +7 Car finance (£m) 629 -2 243 +4 9,531 +5 Aircraft, ships and rolling stock finance (£m) 36 -41 60 -50 549 +20 By channel: Direct finance (£m) 1,153 -7 3,746 0 15,477 +4 Broker-introduced finance (£m) 579 +24 1,620 +21 5,839 +14 Sales finance (£m) 752 -8 2,329 +4 9,436 +7 By product: Finance leasing (£m) 403 +1 1,022 +5 3,809 +6 Operating leasing (£m) 511 -12 1,624 -4 6,755 0 Lease/Hire purchase (£m) 1,225 +1 4,162 +5 16,924 +8 Other finance (£m) 1,053 +19 1,053 +19 4,281 +5 Asset Finance Connect Asset Finance Connect brings you news and updates about UK and European auto, equipment and asset finance providers. Sign up to our newsletter Featured Stories NewsUS equipment finance confidence hits three-year high NewsAlba Leasing and Banca Sistema announce partnership NewsDLL and Kempower partner to drive EV charging accessibility Equipment Finance
