01/14/2022 | Press release | Distributed by Public on 01/14/2022 03:18
14 January 2022
New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in November 2021 by 5% compared with the same month in 2020. In the eleven months to November 2021, new business was 16% higher than in the same period in 2020.
The plant and machinery finance and commercial vehicle finance sectors reported new business up in November by 35% and 7% respectively, compared with the same month in 2020. By contrast, the business equipment finance and IT equipment finance sectors reported falls in new business of 14% and 50% respectively, over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
"The asset finance market returned to growth in November with new finance provided to SMEs up by 21% compared with the same month in 2020. New business in 2021 as a whole is likely to be £31 billion, 13% lower than the pre-pandemic peak as disruption caused by equipment shortages and the broader economic impacts of new waves of Covid-19 slow the rate of recovery.
"The industry has remained resilient during the pandemic and continues to support businesses of all sizes to invest in a more sustainable future. Our latest research suggests that FLA members financed almost 40% of UK investment in machinery, equipment and purchased software in Q3 2021, the highest rate since Q2 2019.
"We continue to urge the Government to extend the super-deduction allowance for expenditure on qualifying plant and machinery to include leasing so the industry can support more businesses to recover and grow."
Nov 2021 |
% change on prev. year |
3 months to Nov 2021 |
% change on prev. year |
12 months to Nov 2021 |
% change on prev. year |
|
Total FLA asset finance (£m) |
2,517 |
5 |
7,816 |
2 |
31,376 |
14 |
Total excluding high value (£m) |
2,362 |
3 |
7,318 |
0 |
29,330 |
14 |
Data Extracts: By asset: |
||||||
Plant and machinery finance (£m) |
624 |
35 |
1,813 |
25 |
7,250 |
22 |
Commercial vehicle finance (£m) |
747 |
7 |
2,151 |
0 |
8,418 |
20 |
IT equipment finance (£m) |
77 |
-50 |
350 |
-35 |
1,835 |
-29 |
Business equipment finance (£m) |
137 |
-14 |
485 |
-2 |
1,845 |
1 |
Car finance (£m) |
643 |
-6 |
2,141 |
-5 |
8,478 |
16 |
Aircraft, ships and rolling stock finance (£m) |
10 |
2 |
48 |
-6 |
346 |
-3 |
By channel: |
||||||
Direct finance (£m) |
915 |
-15 |
2,932 |
-15 |
12,498 |
1 |
Broker-introduced finance (£m) |
588 |
16 |
1,790 |
12 |
6,836 |
25 |
Sales finance (£m) |
859 |
22 |
2,597 |
12 |
9,996 |
25 |
By product: |
||||||
Finance leasing (£m) |
241 |
-15 |
788 |
-23 |
3,239 |
-7 |
Operating leasing (£m) |
477 |
1 |
1,584 |
6 |
6,220 |
17 |
Lease/Hire purchase (£m) |
1,494 |
13 |
4,371 |
4 |
17,286 |
19 |
Other finance (£m) |
195 |
-19 |
723 |
-12 |
3,254 |
-5 |
Note to editors: