The asset finance market has been talking about huge demand for funding over the last 6 months. The scale of the growth is now more than ever evident with new figures released by the Finance & Leasing Association (FLA). They show that total asset finance new business grew by 39% in June 2021 vs June 2020. That follows a 28% growth year on year for the first 5 months of the year.
Two sectors posting record growth are the the plant & commercial vehicle finance sectors. They show a 47% growth in June 2021 vs June 2020. Several other sectors have growth over 30% vs this time last year.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The asset finance market continued to report robust broad-based growth in June, but as expected growth rates are beginning to moderate. The H1 2021 results show that new business levels have recovered strongly as restrictions to deal with the pandemic have been gradually eased.
“Our latest research suggests that the industry has maintained its optimism about the opportunities for growth despite the risks to the economic recovery from further waves of Covid-19. The FLA’s Q3 2021 industry outlook survey shows that 93% of asset finance providers expected new business growth over the next twelve months.”
This shows now is the time to invest in your business. Now is the time to purchase assets for growth in 2021. Due to asset supply shortages those who don’t act now are likely to find purchasing asset in 2022 very difficult. A number of sectors are highlighting supply shortage including plant machinery, commercial vehicles and cars. Some trailer manufacturers are already ordering for 2023.
Amica Finance are here to help source, sell and fund new business assets. Call us today on 01889 221800
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For more information visit the FLA website. Click here