Asset finance new business surpasses pre-crisis peak
New figures released today by the Finance & Leasing Association (FLA) show 20% growth in asset finance new business for deals of up to £20 million in June 2015, compared with the same month last year. As a result, new business in this market reached £27.1 billion in the twelve months to June, surpassing its pre-crisis peak of £26.7 billion.
IT equipment finance grew by 32% in June compared with the same month in 2014, while business car finance and plant and machinery finance grew by 30% and 11% respectively over the same period.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA said:
“The first half of 2015 saw the asset finance market record its best start to a year since 2008. The industry reported growth across all main finance channels and finance products as businesses invested in a wide range of equipment to help them expand and grow.
“The economy’s return to above-trend growth in the second quarter of 2015 suggests that the recovery in business investment is likely to continue and that we will see further growth in leasing and hire purchase in the second half of 2015.”