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April 8, 2022

Asset finance new business fell by 2% in February 2022: FLA

By Leasing Lifeeditorial

Equipment finance reported new business up by 17% in February, YoY

Total asset finance new business (primarily leasing and hire purchase) fell in February 2022 by 2% compared with the same month in 2021, according to new figures released by the Finance & Leasing Association (FLA).

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In the first two months of 2022, new business was 5% higher than in the same period in 2021.

The business equipment finance sector reported new business up by 17% in February compared with the same month in 2021. By contrast, the plant and machinery finance and commercial vehicle finance sectors reported falls in new business of 1% and 4% respectively, over the same period.

Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The asset finance market continues to be adversely affected by the disruption to equipment supply caused by the pandemic and the invasion of Ukraine. Nevertheless, some sectors reported double-digit growth in February including asset finance new business provided to SMEs which increased by 10% and for construction equipment which grew by 21%.

“The near-term economic outlook has become more difficult for businesses facing higher costs across the board, but we continue to expect business investment to recover as the year progresses. The asset finance market will play a vital role in supporting businesses of all sizes to invest as they embrace digitalization and work towards meeting net-zero targets.”

Meanwhile, the FLA reported that the consumer car finance new business volumes were up in February 2022 by 24% compared with the same month in 2021. The corresponding value of new business grew by 39% over the same period. In the first two months of 2022, new business volumes were 34% higher than in the same period in 2021.

The consumer new car finance market reported new business up 15% by value and 9% by volume in February compared with the same month in 2021. In the first two months of 2022, new business volumes in this market were 30% higher than in the same period in 2021. The percentage of private new car sales financed by FLA members in the twelve months to February 2022 was 90.8%.

UK asset finance market grew by 11% in January: FLA

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How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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