Asset finance market up by 6% in May

Asset finance new business (primarily leasing and hire purchase) for deals of up to £20 million grew by 6% in May, compared with the same month in 2018, according to the Finance & Leasing Association (FLA).

New finance for plant and machinery and commercial vehicles both grew by 8% in May compared with the same month last year, while the business equipment finance sector reported new business up by 3% over the same period.

Geraldine Kilkelly, the NLA’s head of research and chief economist, said: “The asset finance market continued to report growth across many sectors in May, with new business overall up by 8% in the first five months of 2019.

“The strong performance so far this year means that the industry is helping to fund an increasing share of business investment. The percentage of UK equipment investment funded by asset finance members in Q1 2019 was 38.0%, the highest for more than a decade.”

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