Asset finance market grew by 80% in April 2021

New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew by 80% in April 2021 compared with the same month in 2020. In the first four months of 2021, new business was 15% higher than in the same period in 2020.

The commercial vehicle finance sector reported new business up by 140% in April compared with the same month in 2020.  The plant and machinery and business equipment finance sectors reported new business up by 58% and 43% respectively, over the same period. By contrast, the IT equipment finance sector reported new business 13% lower in April than in the same month in 2020.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:

“The strong growth reported by the asset finance market in April was not unexpected given the adverse impact of the first lockdown on new business levels during the second quarter of last year. The latest figures show that the recovery in April was broad-based, with finance provided for investment in a wide range of vehicles, machinery and equipment. The fall in IT equipment finance new business reflected the relative strength of this sector at the start of the pandemic.

“If the industry maintains the performance we have seen in recent months, it would be on course to reach its pre-pandemic annual new business total by the end of 2021.  We urge the Government to recognize the importance of the asset finance market in supporting business investment and extend the super-deduction allowance for expenditure on qualifying plant and machinery to include leasing.”

Apr

 2021

% change on prev. year

3 months to

Apr 2021

% change on prev. year

12 months to

Apr 2021

% change on prev. year

Total FLA asset finance (£m)

2,918

80

8,377

26

28,712

-13

Total excluding high value (£m)

2,784

80

7,810

24

26,763

-12

 

Data Extracts:

 

By asset:

Plant and machinery finance (£m)

697

58

1,938

27

6,271

-8

Commercial vehicle finance (£m)

731

140

2,226

40

7,576

-8

IT equipment finance (£m)

131

-13

497

-18

2,314

-19

Business equipment finance (£m)

148

43

463

2

1,722

-21

Car finance (£m)

819

94

2,174

22

7,571

-16

Aircraft, ships and rolling stock finance (£m)

71

261

112

73

360

-32

 

By channel:

Direct finance (£m)

1,270

36

3,454

9

12,293

-19

Broker-introduced finance (£m)

626

128

1,828

41

5,905

-7

Sales finance (£m)

887

160

2,528

36

8,566

-4

 

By product:

Finance leasing (£m)

278

41

861

1

3,468

-13

Operating leasing (£m)

523

125

1,548

25

5,538

-14

Lease/Hire purchase (£m)

1,635

76

4,557

26

15,252

-14

Other finance (£m)

363

55

1,036

45

3,479

-1

Further People Investment at Carrick

Carrick Asset Finance has today announced the appointment of Anton Scott as Senior Broker Manager.

This is a new role created to help fuel the continued growth of the Glasgow-based business which, despite the difficult market conditions of last year, has achieved portfolio growth of 50% over the last 12 months

Anton brings with him strong experience of the asset finance intermediary sector, having previously led a broker sales team for Aldermore Bank, as well as wider leasing and commercial lending experience gained through  management roles with Dawsongroup Finance and Bank of Scotland.

Commenting on the appointment, Carrick’s sales director Iain Corbett said:

‘We’re extremely pleased Anton is joining the team and consider ourselves very lucky to have secured his services.

He’s an experienced individual with a great reputation in the part of the market we focus on and has a first-class network. As of much importance as anything else though, we feel he conducts himself in a way that reflects our own business values and he completely buys into the service-orientation that’s central to the Carrick offering.

We’re happy to have Anton representing us in the market and he’ll play a pivotal part in helping us achieve our significant growth objectives for 2021 and beyond. He’s the fourth addition to the Carrick team since the beginning of the initial lockdown in March last year, which I think demonstrates the extent of our commitment to the asset finance broker segment and illustrates how serious we are about ongoing expansion.’               

Anton will work from a base in Hampshire and be responsible for both the development of new intermediary relationships as well as the management of some of the existing Carrick broker panel. When asked about the challenge ahead he said:

‘I’ve been aware of Carrick since they launched a couple of years ago and have always heard good things about them. When the opportunity came up to join the company I didn’t hesitate and am very much looking forward to helping take the business on to the next stage of its development.

Working in a  young, agile business has great appeal, particularly when there’s so much economic uncertainty around, and I can’t wait to get started. I’m very excited to be joining a company which has remained so totally committed to growth and service excellence, despite the obvious wider trading difficulties.’                  

Carrick operates as a lender in the asset finance sector and focuses on funding business-critical assets for SME customers sourced through a panel of approved brokers. The company was established in 2018 with the assistance of a financing facility from Bank of London & Middle East and the businesses continue to enjoy a close working relationship.

Management Changes at Carrick Asset Finance

Carrick Asset Finance has announced the appointment of Martin Stewart as Managing Director.

He takes over from Gerry Moon who is moving to the position of Non-Executive Chairman at the firm.

Moon, a well-known industry figure who has previously led UK asset finance operations for Fortis Lease and Macquarie, said:

‘We’ve assembled a really strong management team at Carrick and I’m extremely pleased Martin has agreed to take on responsibility for leading us into the next phase of our growth.

I have worked with Martin for nearly 20 years through various businesses and there’s no doubt he has the energy, skills and experience to drive us forward. He has carried out several senior finance roles in each of the leasing companies I have been involved in, and he excelled in supporting those businesses achieve their strategic objectives.      

Although I will be stepping back from day-to-day activities, as Non-Executive Chairman I will continue to work closely with the Board on a variety of matters including wider strategic issues and also on the ongoing Coronavirus’ pandemic.’

The Board team to which Moon refers includes Iain Corbett, Gordon MacGregor and Gary Slavin who respectively hold sales, risk and operations directorships and have some 75 years of combined industry experience between them.

Martin commented:

I am delighted to be taking up the role of Managing Director at Carrick. Since establishing the company under Gerry’s leadership in October 2018, we have grown quickly into a stable and sustainable business with a very positive market profile. I am very much looking forward to taking us onto the next stage of our evolution’

Martin further commented: ‘ the ongoing Coronavirus pandemic presents serious challenges and it is of paramount importance to help our intermediary network and their customers through what is a very difficult period. I know Gerry and the rest of the board are of a similar mindset’

Asked about Moon’s decision to move into a non-executive role, Stewart also added:

‘Gerry has contributed a huge amount to getting this business to where it is today, and it is essential we continue to benefit from the drive and focus for which he is so well-known across the asset finance industry.

He is vastly experienced and, along with Bruce Wood, we now have an enviable capability at non-executive level that my management colleagues and I intend to utilise to its fullest extent to not only guide us through the ongoing Coronavirus pandemic but also the challenges that will undoubtedly lie ahead.’    

Carrick operates as a lender in the asset finance sector and focuses on funding business-critical assets for SME customers sourced through a panel of approved brokers. The company was established with the assistance of a financing facility from Bank of London & Middle East and the businesses continue to enjoy a close working relationship.

18 months of Carrick Asset Finance

Here’s a short, informal video celebrating Carrick’s first 18 months in business

Asset finance new business grows by 5% in September

New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 5% in September, compared with the same month in 2018.  In Q3 2019 as a whole, new business was also 5% higher than in the same quarter in 2018.

New finance for plant and machinery and business cars grew in September by 15% and 4% respectively, compared with the same month in the previous year.  Over the same period, new finance for commercial vehicles held steady.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:

“In September, the asset finance industry reported its strongest growth in new finance for plant and machinery since January 2019 as businesses stockpiled ahead of another Brexit deadline.

“The industry has seen total new business grow in all but one month so far in 2019, with the latest annual new business total reaching a record level of £34.5 billion.”

Sep 2019

% change on prev. year

3 months to Sep

2019

% change on prev. year

12 months to Sep

2019

% change on prev. year

Total FLA asset finance (£m)

2,907

+5

8,454

+5

34,474

+7

Total excluding high value (£m)

2,688

+5

7,862

+5

31,959

+5

 

Data Extracts:

 

By asset:

Plant and machinery finance (£m)

623

+15

1,850

+9

7,445

+12

Commercial vehicle finance (£m)

730

0

2,148

+8

9,098

+14

IT equipment finance (£m)

309

-10

757

-8

2,663

-6

Business equipment finance (£m)

180

-1

584

-4

2,597

+5

Car finance (£m)

712

+4

2,160

+4

8,965

0

Aircraft, ships and rolling stock finance (£m)

20

+78

87

+71

541

+126

 

By channel:

Direct finance (£m)

1,217

-1

3,859

+4

16,062

+6

Broker-introduced finance (£m)

541

+4

1,623

+5

6,616

+12

Sales finance (£m)

930

+15

2,380

+6

9,281

+1

 

By product:

Finance leasing (£m)

405

-8

1,064

+2

4,256

+7

Operating leasing (£m)

501

+1

1,473

0

6,103

-1

Lease/Hire purchase (£m)

1,566

+4

4,718

+8

19,497

+10

Other finance (£m)

280

+20

877

+5

3,313

+8

Asset finance market grows by 8% in July

New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) overall grew in July by 8% compared with the same month last year. New business for deals of up to £20 million increased by 7% over the same period.

The plant and machinery finance, and commercial vehicle finance sectors reported new business up in July by 12% and 13% respectively, compared with the same month in 2018, while the car finance sector saw growth of 6%.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:

“The asset finance market made a solid start to the third quarter of 2019.  Despite subdued levels of business investment, the industry has seen new business grow by 7% in the twelve months to July.

 “The commercial vehicle finance and construction equipment finance sectors have returned strong performances in 2019 so far, with new business up in the first seven months of 2019 by 17% and 22% respectively.”

 Jul 2019% change on prev. year3 months to Jul2019% change on prev. year12 months to Jul2019% change on prev. year
Total FLA asset finance (£m)3,075+89,244+534,305+7
Total excluding high value (£m)2,833+78,429+331,792+5
       
Data Extracts:By asset:      
Plant and machinery finance (£m)639+121,897+77,337+12
Commercial vehicle finance (£m)751+132,349+109,046+14
IT equipment finance (£m)2760714-132,725+2
Business equipment finance (£m)195-11622-32,624+5
Car finance (£m)876+62,544+28,938-2
Aircraft, ships and rolling stock finance (£m)47+59218+176523+114
By channel:      
Direct finance (£m)1,468+114,285+516,090+6
Broker-introduced finance (£m)564+41,709+86,545+13
Sales finance (£m)800+22,435-39,158-2
By product:      
Finance leasing (£m)351+151,013+24,308+12
Operating leasing (£m)536-11,56106,107-4
Lease/Hire purchase (£m)1,777+155,289+719,363+10
Other finance (£m)313-14945-33,222+5

Asset finance market grows by 11% in March

New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 11% in March, compared with the same month last year, and also by 11% in Q1 2019 overall.

New finance for plant and machinery grew in March by 11% compared with the same month in 2018. Over the same period, the commercial vehicle finance and IT equipment finance sectors reported growth of 17% and 5% respectively.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:

“The asset finance market reported a record level of monthly new business in March and the strongest quarterly growth in Q1 2019 since Q3 2016.

“Asset finance continued to support key sectors of the economy in the first quarter as new finance for manufacturing and construction equipment increased by 25% and 26% respectively, compared with Q1 2018.”

Mar 2019

% change on prev. year

3 months to Mar

2019

% change on prev. year

12 months to Mar

2019

% change on prev. year

Total FLA asset finance (£m)

3,679

+11

8,490

+11

33,447

+7

Total excluding high value (£m)

3,403

+7

7,861

+9

31,069

+5

 

Data Extracts:

 

By asset:

Plant and machinery finance (£m)

728

+11

1,861

+12

7,055

+8

Commercial vehicle finance (£m)

994

+17

2,231

+23

8,402

+14

IT equipment finance (£m)

211

+5

612

+18

2,808

+19

Business equipment finance (£m)

252

-1

623

+2

2,670

+5

Car finance (£m)

993

-3

2,209

+2

8,940

-3

Aircraft, ships and rolling stock finance (£m)

111

+238

147

+122

392

-12

 

By channel:

Direct finance (£m)

1,711

+5

3,926

+7

15,492

+4

Broker-introduced finance (£m)

658

+19

1,642

+19

6,354

+16

Sales finance (£m)

1,033

+3

2,293

+5

9,223

+1

 

By product:

Finance leasing (£m)

429

+6

1,040

+14

4,220

+11

Operating leasing (£m)

645

-10

1,447

-6

5,894

-9

Lease/Hire purchase (£m)

2,006

+9

4,756

+15

18,769

+11

Other finance (£m)

439

+53

963

+24

3,240

+7

Carrick Asset Finance: Up and Running

With six months trading now under their belts there’s a distinctly positive ‘end of the beginning’ feeling in the air at Carrick Asset Finance. In this short piece, Carrick’s finance director Martin Stewart takes stock of the market and explains how this start-up operation is finding its feet:

We launched Carrick Asset Finance in October last year, confident in the notion we knew exactly what our key challenges would be. It was all going to be about price – right? Oh, and achieving differentiation in a busy marketplace and, not forgetting of course having to compete with the stretched credit terms currently on offer across the sector.

Well, while we have been touched to some extent by each of these issues, we’ve happily so far managed to navigate our way to a position ahead of even our most optimistic of forecasts. We’re hyper-aware there’s no room whatsoever for complacency but are quietly very pleased at the progress we’ve made since opening for business, and the great reception we’ve had from the market. Our early sense is of some good momentum building as our business matures and of developing a healthy pipeline of both hard and soft asset business as we move into the traditionally strong Spring trading period.

In fact, what we’ve discovered is that the main challenge in establishing the business has been one of communication. Despite only working with a relatively small panel of introducers, it’s been a big exercise to get our message across to the people that matter. Making sure decision makers and sales people across our broker base have a clear view of our risk appetite, our approach to pricing, and our general way of working is obviously pivotal. The UK asset finance intermediary space is thriving and given the scale and geographical reach of many of the firms we’ve developed partnerships with, that process of engagement and explaining our offering is an ongoing one, and central to our success.

Fortunately, our management team are quite well known in asset finance circles, and the introducers we’ve approached have all been very willing to talk and develop business relationships, often because they have had productive connections with us in the past. This has unquestionably been a real help in getting us up and running and has accelerated what could have otherwise been a more protracted process. We actually managed to complete the formal onboarding of more than half our introducer panel within a fortnight of our launch, meaning we were writing business very early on in that first month of trading, and that got us off to a very strong start.

The process of engaging with brokers and spreading the word goes on unabated though because we fully recognise we’ve no divine right to business. With brokers having a larger choice of lenders than ever before, particularly in the Tier 2 arena, the market is ultra-competitive and the need for both clarity and awareness around our offering, and for us to be as communicative and accessible as possible to our brokers are absolutely minimum requirements if we want to build on the early foothold we’ve gained. Luckily, so far, our brokers have been listening, with things like our documentation production service or our process of wherever possible agreeing higher value credit lines when reverting with a transactional approval, really seeming to have caught people’s attention and have helped us gain the early traction we have.

Looking forward, there’s no escaping the endless discussions and speculation about the UK’s political situation and the possible impacts this could have on the economy and capital investment. Like everyone else, we’ll just have to deal with matters as they unfold, however we do take comfort from the generally resilient nature of the ‘real’ economy and the subsectors of that which we typically fund.

Whether things improve, stay the same, or deteriorate in some way – time will tell, but as a new entrant to the market we’re very keen to keep growing. We’re confident that our combination of experienced management, high-quality introducer base, and the natural agility we have as new business will stand us in good stead. We take absolutely nothing for granted though and will keep working hard to push our message out there and continue developing a distinct and value-added offering for our introducers.

Martin Stewart

Finance Director

April 2019

Asset finance market grows by 7% in December

New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew in December by 7% compared with the same month in 2017, and by 5% in Q4 2018 as a whole.

The plant and machinery finance and commercial vehicle finance sectors reported new business up in December by 29% and 18% respectively, compared with 2017, while new finance for IT equipment was up by 16% over the same period.

Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:

“The asset finance market reported strong growth across many sectors in the final quarter of 2018 which contributed to a record level of new business in 2018 as a whole of almost £33 billion.  This represented the eighth consecutive year of growth.

“The temporary increase in the Annual Investment Allowance for plant and machinery from 1 January 2019 announced in the last Budget should support further growth in this sector over the next few months.”

 

Dec 2018

% change on prev. year

3 months to Dec

2018

% change on prev. year

12 months to Dec

2018

% change on prev. year

Total FLA asset finance (£m)

2,788

+7

8,236

+5

32,571

+3

Total excluding high value (£m)

2,501

+8

7,656

+4

30,472

+3

 

Data Extracts:

 By asset:

Plant and machinery finance (£m)

660

+29

1,786

+18

6,849

+5

Commercial vehicle finance (£m)

673

+18

2,218

+14

7,984

+7

IT equipment finance (£m)

342

+16

674

-9

2,714

+15

Business equipment finance (£m)

247

+11

735

+16

2,659

+4

Car finance (£m)

617

+3

2,040

-7

8,893

-5

Aircraft, ships and rolling stock finance (£m)

30

-17

123

+105

312

-43

 By channel:

Direct finance (£m)

1,268

+13

3,833

+5

15,259

+2

Broker-introduced finance (£m)

502

+8

1,629

+12

6,090

+12

Sales finance (£m)

731

-1

2,195

-5

9,123

-1

 By product:

Finance leasing (£m)

381

-4

1,134

+11

4,094

+8

Operating leasing (£m)

511

0

1,531

-6

5,981

-11

Lease/Hire purchase (£m)

1,532

+28

4,658

+13

18,158

+8

Other finance (£m)

249

-3

637

-5

3,052

-3

WINTER CHARITY PLEDGE

At Carrick Asset Finance we recognise the importance of giving something back. While our business is young, we’re extremely pleased with how our first few months of trading have gone and are very grateful for your business support.

We therefore thought it would be a good idea to channel this gratitude into a charity pledge, through which we’d like a variety of charities and community groups to benefit.

For every new proposal we receive and pay out from our introducer network between 1st December 2018 and 31st January 2019, we’ll donate £50 to the charity or community group of their choice. For the introducer generating the highest total donation over the period, we’ll double the amount going to the beneficiary.

We’ve got off to a great start and think some charitable giving on behalf of our introducers is a nice thing to do, particularly at this time of year.

From all of us at Carrick Asset Finance we wish you all a Merry Christmas and a Happy New Year!