Asset finance new business fell 5% year-on-year in March to £3.3bn, with IT equipment recording a particularly steep fall, figures from the Finance and Leasing Association have shown.

This brought the quarter to a negative close, with new business down 3% year-on-year for the three months to March, to £7.6bn. Excluding high value deals, new business fell 3% in March and 1% over the quarter.

In March, IT equipment took the biggest hit, with business down 24% to £196m. Plant and machinery also fell 9% to £654m.

Commercial vehicles and car finance proved more resilient, down 2% to £849m and 7% to £1bn respectively. The only asset class that saw a rise was business equipment, up 14% to £259m.

Among facility types, operating leases fell noticeably, down 13% to £714m.

The sales finance and broker finance channels saw falls in originations of 10% to £998m and 4% to £579m respectively. Direct finance was more resilient, and grew 1% to £1.6bn.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The asset finance market recorded its third highest monthly new business total in March at more than £3.3 billion.

“However, the latest figures reflect some of the recent slowdown in the UK economy, with new finance for agricultural and construction equipment 1% and 8% lower in March than in the same month in 2017.”