UK Asset Finance Market Registered 9% Growth in Q2 2012 Y-o-Y, According to Timetric
21 Dec 2012 • by Natalie Aster
The European asset finance industry is optimistic over business growth and profitability
Survey results reveal that the majority of asset finance lenders expect growth in business volumes. A total of 77% of respondents expect their business volumes to increase over the next 12 months, with 44% of the respondents expecting an increase of between 5% and 20%. Similarly, 69% of respondents expect an increase in profit with 43% expecting an increase of between 5% and 20% over the next 12 months.
According to the Finance and Leasing Association (FLA), a trade association based in the UK comprised of members from motor finance, consumer credit and asset finance sectors, the asset finance market in the UK registered a 9% growth in the second quarter of 2012 in comparison to the same quarter in the previous year.
Eastern Europe, Brazil and China are the most promising emerging markets for the European asset finance industry
A total of 33% of respondents expect Brazil to offer the highest growth potential among the emerging markets for asset finance lenders. Brazil has one of the fastest-growing economies in the world and the country’s commodities boom has been the key growth driver. In addition, the upcoming 2014 World Cup and 2016 Rio de Janeiro Olympic Games are expected to promote growth in construction activities and infrastructure investments. With asset financing as one of the preferred modes of funding, a good potential for the asset finance lender companies exists.
The new report "European Asset Finance Industry Business Outlook Survey 2013: Industry Dynamics, Market Trends and Opportunities, Marketing Spend and Sales Strategies in the Asset Finance Industry" by Timetric states that China was identified as the leading emerging market by 29% of the respondents from the European asset finance industry. It also emerged as the second largest economy and its rapid economic development has made it an attractive destination. The country has started to invest significantly in infrastructure projects, such as water conservation, power generation stations and substations, high speed railway, road and other infrastructure. Growth in the construction industry has had a direct impact on the asset finance industry because of the increase in investment activity.
European Asset Finance Industry Business Outlook Survey 2013: Industry Dynamics, Market Trends and Opportunities, Marketing Spend and Sales Strategies in the Asset Finance Industry
Published: November, 2012
Price: US$ 2,000.00
Asset finance lenders expect capital availability to increase over the next 12 months
Of all the respondents from asset finance lender companies, 36% expect capital availability to ‘increase slightly’ while 35% expect ‘no change’. A notable 53% of respondents from supplier companies expect ‘no change’ in capital availability while a total of 38% expect it to increase, with 13% of the supplier respondents expecting a significant increase.
Average annual marketing budget of companies expected to increase slightly in 2013
Timetric and VRL’s industry survey revealed that the average marketing budgets, of both asset finance lenders and suppliers, are expected to rise by 3.2% over the next 12 months. Marketing budgets of asset finance lenders are expected to increase by 2.8% in 2013, and the marketing budgets of suppliers are expected to increase by 4%.
In general, marketing expenditure is expected to increase slightly over the next 12 months. Cost controls, the restructuring of existing marketing budgets and economic uncertainty are considered to be the key reasons for such expectations. Companies are restructuring their budgets to increase expenditure on online marketing campaigns, while rationalizing expenditure on traditional platforms.
More information can be found in the report “European Asset Finance Industry Business Outlook Survey 2013: Industry Dynamics, Market Trends and Opportunities, Marketing Spend and Sales Strategies in the Asset Finance Industry” by Timetric.
To order the report or ask for sample pages contact [email protected]