Asset finance market grows at strongest rate for seven years

THE asset finance market has seen robust recovery, growing at the strongest rate since the onset of the economic downturn.

Figures released by the Finance & Leasing Association (FLA) revealed growth in asset finance new business of 13% during 2014 to £25.4bn.

Plant and machinery finance grew by 48% in December, IT equipment finance by 10% and business equipment finance by 6%.

In 2014 as a whole, plant and machinery finance was up by 21%, business new car finance by 17%, business equipment finance by 13% and IT equipment finance by 5%.

Geraldine Kilkelly, FLA’s head of research and chief economist, said: “The figures show a strong recovery in the asset finance market in 2014. Businesses were keen to use leasing and hire purchase to invest in a wide range of assets, with particularly strong growth in new finance for production plant, agricultural equipment and construction equipment.

“The core market of deals of up to £20m wrote new business of £24.6bn in 2014, and is on target to surpass its pre-crisis peak in 2015.”