Total asset finance new business (primarily leasing and hire purchase) fell by 6% in December 2020 compared with the same month in 2019. In 2020 as a whole, new business was 23% lower than in 2019, according to the UK’s Finance & Leasing Association. 

The commercial vehicle finance sector reported new business up by 2% in December compared with the same month in 2019. The plant and machinery finance and IT equipment finance sectors reported falls in new business of 4% and 21% respectively, over the same period.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The asset finance market continued to show improvement in December, despite ongoing restrictions as a result of the Covid-19 pandemic. The market reported its highest monthly level of new business since March 2020 and the smallest rate of new business contraction since January 2020. 

“The vaccine rollout in the UK has improved the outlook for the UK economy in the second half of 2021. Almost three-quarters of asset finance respondents to the FLA’s Q1 2021 Industry Outlook Survey expected some growth in new business over the next year if uncertainty reduces.”

FLA members provided £113bn in new business in 2020

FLA members across the asset finance, consumer finance and motor finance markets provided £113bn of new business in 2020 to help support business investment and households make essential purchases during the pandemic. 

Of this total, £37bn was provided by non-bank lenders and £16bn went to SMEs, the Finance & Leasing Association reported.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Stephen Haddrill, Director General at the FLA, said: “Our latest figures show the great support that FLA members gave to their customers and the economy in 2020, including to SMEs. Member companies will build on this during 2021, contributing to a full recovery of the UK economy.

“To ensure that FLA members achieve this they need a balanced approach to forbearance from the FCA this year with a focus on tailored support; independent finance companies need to be supported; and clarity and stability on policies for net-zero are required, including recognition of support for technology risk.”