IT equipment finance takes pole position as demand for asset finance in UK rockets in June

IT equipment finance in the UK grew by 32% in June 2015 compared with the same month in 2014. In the 12 months to June IT equipment finance grew by a total of 34% – leading the UK asset sectors in growth terms for the year.

Close behind was car finance which Finance & Leasing Association (FLA) members reported grew by 30% in June compared to the same month the previous year. The 12-month to date figure for car finance was a very healthy 20%.

Plant & machinery finance was up by 11% in June (16% for 12 months) and commercial vehicle finance grew by 18% in June (9% for 12 months.)

In fact the first half of 2015 saw the asset finance market record its best start to a year since 2008. The industry reported growth across all main finance channels and finance products as businesses invested in a wide range of equipment to help them expand and grow.

The economy’s return to above-trend growth in Q2 2015 suggests that the recovery in business investment is likely to continue and that FLA members will see further growth in leasing and hire purchase in the second half of 2015.

A study of delivery channels revealed healthy growth from all directions – direct, broker and sales finance sources.

The growth in direct finance is especially interesting indicating, as it does, that market demand is growing of its own accord.

Data extracts – by channel

In terms of product growth, hire purchase and lease purchase were the star performers for FLA members with a 24% increase in June 2015 compared to the same month the previous year and 20% up in the 12 months to date.

This implies that small businesses are increasing their appetite for asset renewal, their traditional methods of funding and continuing their wish to retain title to the assets they acquire.

Data extracts – by product