FLA ASSET FINANCE STATISTICS

4 May 2006

FLA (Finance & Leasing Association) today released figures for the asset finance industry for the first quarter of 2006.

Overview

• First quarter results indicated strong growth in asset finance provided to fund capital investment.  New business rose by 14% compared with the first quarter of 2005 to almost £5.2 billion.
• Finance for plant, machinery and equipment recorded the biggest increase with new business up 23% in the first quarter.
• Both finance leasing and hire purchase were popular as methods for funding investment, with new business up 16% and 20% respectively in the first quarter.

Industry comment
Commenting on the latest figures, Martin Hall, FLA’s Director General, said:

“This latest set of figures is most encouraging for the asset finance industry particularly when viewed against relatively weak business investment figures more generally.  It is indicative of the increasing popularity of asset finance as a method of funding those capital purchases which are vital to the health of UK businesses.”