ANNUAL SURVEY SHOWS RECORD PERCENTAGE OF BUSINESS FINANCE PROVIDED BY FLA MEMBERS IN 2005

4 July 2006

The asset finance industry reached a new record for new business recorded in 2005 despite signs of slowing growth in the UK economy as a whole.

Taken together, FLA members provided £27.2 billion of finance to businesses to fund capital investment – an increase of 6.4 per cent on 2004. This value represents over 30 per cent of UK fixed capital investment (excluding real property).

This result comes despite GDP growing at its slowest rate in 13 years and fixed capital investment growth much reduced on 2004.

Geraldine Kilkelly, FLA’s Head of Research, commented on the survey:
“Members have had a record year in 2005, with strong growth leading to the provision of over 30 per cent of UK fixed capital investment last year, an all time high. We expect growth to continue in 2006, with demand for asset finance remaining strong despite tricky market conditions.”

Key trends included:
• New business broken down by asset type and finance product (finance leasing, operating leasing, hire purchase).
• Finance penetration of FLA members in different sectors and by product.
• What’s happening in the transport equipment sector – new cars, used cars, commercial vehicles, aircraft, ships and rolling stock are all included.
• What’s happening in the plant and machinery, IT equipment and other business equipment sectors.
• How much new business is going to fund assets used outside the UK.
• The market share of the top ten and top forty asset finance providers.
• Equipment leasing provided by the top five countries in Europe.
• Factoring and invoice discounting client analysis.

To order a copy of the survey please contact the switchboard on 020 7836 6511 or email info@fla.org.uk