During August 2016 new businesses taking asset finance grew by 18%, the same as the year before making August a record month for asset finance according to recent figures carried out by the Finance & Leasing Association (FLA).
Within asset finance, the reason for taking the finance out grew the most for vehicle and equipment by 28% whereas finance for machinery and plants stepped up by 20% during the 8th month of the year.
Chief economist at the FLA, Geraldine Kilkelly comments;
“August saw the asset finance market record its strongest rate of new business growth so far this year, with double-digit growth across most of the main asset sectors. The strongest performance of the plant and machinery finance sector was driven by higher levels of new finance for manufacturing, construction and agricultural equipment.”
The Director of Midlands Asset Finance, Dave Chapman said;
“The latest FLA figures provide further evidence that the economy remains fairly robust, that businesses are looking to invest and that they are looking at options other than the traditional banking route to finance their growth.”
The research conducted by the FLA found that businesses that were in their point of sale (POS) took to new car finance where the market grew by 9%, volume also increased by 5%, again this was the same during 2015. The amount of new car sales which were financed by the FLA hit 85.5% within the 12 months up to August – this was compared to 85.3% up to July.
“The growth reported by the POS consumer car finance market in August marked more than five years of consecutive monthly new business growth. The performance of this market is in line with our expectations of strong single-digit new business growth in 2016 as a whole.”