Figures released by the Finance & Leasing Association (FLA) show that asset finance new business grew by 7% in April, compared with the same month in 2018.

New business in the plant and machinery finance and business equipment finance sectors was up by 8% and 9% respectively, while commercial vehicle finance new business increased by 23% over the same period.

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Geraldine Kilkelly, head of research and chief economist at the FLA, said:

“The asset finance market has made a great start to the second quarter of 2019, recording its seventh consecutive month of new business growth in April.

“Growth in new finance for commercial vehicles has been particularly robust in recent months, which may in part reflect the bringing forward of investment ahead of the introduction of EU regulation that requires new CVs to have smart tachographs from June 2019.”

Total asset finance for the month of April was £2.94bn (€3.32bn). The total excluding high value deals was £2.82bn, a rise of 10% year-on-year.

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IT equipment finance showed a 16% year-on-year rise to £184m. Car finance for the month of April 2019 was £889m, a year-on-year rise of 2%.

By channel, direct finance was £1.48bn, a 16% year-on-year rise. Broker introduced finance was £561m, a 10% rise compared to April 2018. Sales finance was £779m, with no year-on-year change.

By product, finance leasing for the month was £370m, a 16% improvement over April 2018. Operating leasing was £551m, a 13% year-on-year increase. Both Lease and hire purchase and other forms of finance showed rises also, respectively up 9% to £1.75bn and 11% to £205m.

In 2018, FLA members provided £136bn of new finance to UK businesses and households. Around £33bn of finance was provided to businesses and the public sector. FLA members financed around a third of UK investment in machinery, equipment and purchased software in the UK in 2018.

In April the FLA’s Specialist Automotive Finance (SAF) programme was relaunched in partnership with The London Institute of Banking & Finance.