The Finance & Leasing Association (FLA) has said asset finance new business was up 31% year-on-year during September 2014, to reach over £2.5bn (3.19bn), the highest monthly figure in almost six years.
Business equipment finance reported its strongest growth so far this year, with new business up 53% year-on-year in September compared with the same month in the previous year. Business new car finance grew by 30% year-on-year in the same period. Plant and machinery finance, commercial vehicle finance and IT equipment finance were up by 22%, 16% and 15%, all year-on-year, respectively.
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Geraldine Kilkelly, head of research and chief economist at the FLA, said; "September saw robust growth across all the key asset finance sectors. New business in the third quarter of this year increased by 21%, three times the rate of growth recorded in the second quarter. These figures clearly show that the asset finance industry, through the provision of leasing and hire purchase, is helping UK businesses to invest and grow."
| Sep 2014 | % change on prev. year. | 3 months to Sept 2014 | % change on previous year | 12 months to Sept. 2014 | % change on previous year | |
|---|---|---|---|---|---|---|
| Total FLA asset finance (£m) | 2528 | +31 | 6615 | +21 | 24, 641 | +14 |
| Total, exc. high value(£m) | 2331 | +21 | 6316 | +18 | 23,844 | +13 |
| Data: | ||||||
| plant & machinery value(£m) | 448 | +22 | 1391 | +20 | 5121 | +17 |
| commercial vehicle finance(£m) | 565 | 16 | 1401 | 13 | 5804 | 20 |
| IT equipment finance(£m) | 147 | +15 | 373 | +15 | 1508 | +2 |
| Business equipment finance(£m) | 230 | +53 | 556 | +24 | 2108 | +10 |
| Car finance (£m) | 776 | +29 | 2095 | +30 | 7386 | +10 |
| Aircraft, ships, rolling stock | 21 | -25 | 54 | -4 | 266 | -21 |
