Commercial vehicle finance was up 6% to £488m in January on 2015’s figure, against a backdrop of negative growth against last year’s figures for january 2015.
Asset finance new business (primarily leasing and hire purchase) grew by 3% in January compared with the same month last year – the twenty-eighth consecutive month of growth.
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Commercial vehicle finance and car finance grew in January by 6% and 4% respectively, but plant and machinery finance fell by 7% over the same period.
IT and business equipment finance also negative growth, down 1% to £102m and 13% to £151m (respectively) on january 2015’s comparative figures
Direct financing by lessors in January was up 13% on last january at £1.08bn, yet broker introduced finance and sales finance were both down 8% to £367m and £525m respectively compared to january 2015.
Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said: "Growth continued in the asset finance market in January, albeit at a slower rate than we have seen in recent months. A 17% fall in construction plant finance contributed to the overall contraction in plant and machinery finance and mirrors trends in the wider construction sector.
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By GlobalData"Asset finance continues to be an important source of finance for SMEs with the latest BDRC SME Finance Monitor showing a success rate of 94% for SMEs who applied for asset finance in 2015. More than £16 billion of asset finance new business went to support SME investment in machinery and equipment last year."
