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Equipment Finance News Asset finance market reaches record level in UK during 2019 Published: 13th February 2020 Share The UK asset finance market reached record levels last year as demand grew 6%, according to the Finance & Leasing Association (FLA). Latest FLA figures show that total asset finance new business (primarily leasing and hire purchase) reached a record level of £35.7 billion. In the final month of the year, business only grew by 1% compared to December 2018, but the record was secured by strong performances earlier in the year. During December 2019, the IT equipment finance sector continued to report double-digit growth as new business increased by 10% 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 2% and 22% respectively, over the same period, potentially reflecting uncertainty as companies waited for the results of a general election and future clarity on Brexit. In 2019 as a whole, the commercial vehicle finance and plant and machinery finance sectors reported the strongest growth rates, with new business up by 9% and 5% respectively, compared with 2018. Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The asset finance industry reached a record level of new business in 2019, despite continued weakness in business investment. Within the overall total, more than £20 billion went to SMEs to fund investment in machinery and equipment, 4% higher than in 2018. “Key industry sectors benefitted from using asset finance last year, with double-digit growth in new finance provided for construction and manufacturing equipment.” UK Asset Finance Market 2019 Dec 2019 % change on prev. year 3 months to Dec 2019 % change on prev. year 12 months to Dec 2019 % change on prev. year Total FLA asset finance (£m) 2,943 1 8,679 1 35,653 6 Total excluding high value (£m) 2,605 0 7,970 0 33,008 5 By asset: Plant and machinery finance (£m) 530 -22 1,677 -9 7,320 5 Commercial vehicle finance (£m) 693 -2 2,186 -7 9,136 9 IT equipment finance (£m) 376 10 840 25 2,830 3 Business equipment finance (£m) 231 2 603 -9 2,465 -2 Car finance (£m) 754 8 2,382 4 9,998 4 Aircraft, ships and rolling stock finance (£m) 35 17 116 -5 566 88 By channel: Direct finance (£m) 1,279 -5 3,987 -1 16,680 5 Broker-introduced finance (£m) 522 1 1,689 1 6,782 9 Sales finance (£m) 804 7 2,294 1 9,546 2 By product: Finance leasing (£m) 339 -15 1,088 -8 4,378 3 Operating leasing (£m) 640 7 1,815 1 6,984 1 Lease/Hire purchase (£m) 1,458 -5 4,476 -4 19,305 6 Other finance (£m) 336 35 930 44 3,587 18 Source: FLA 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
