Asset finance for new business increased by 12% in November 2014, compared with the same month the previous year, Finance & Leasing Association (FLA) figures revealed.
The annual total of new business exceeded £25bn (32.78bn), for the first time in more than five years.
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The highest growth was recorded in IT Equipment finance, which rose by 40% year on year reaching £1.6bn. Other considerable increases were witnessed in plant and machinery finance (14%) and business equipment finance (25%).
Commercial vehicle finance and car finance saw a modest growth, 2% and 8% respectively.
Aircraft, ships and rolling stock finance was the only sector that had a year on year decrease in asset finance new business, 21% lower than November 2013.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
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By GlobalData"November was another month of solid growth for the asset finance industry, with good performances in key sectors. Asset finance, primarily leasing and hire purchase, is particularly popular with SMEs because the success rate on application for micro, small and medium sized businesses is the highest of all the major finance options.
"There is good news too on FLA members’ share of UK business investment, with the latest figures showing an increase to around 28% of UK investment in machinery, equipment and purchase software in Q2 and Q3 2014."
