ISBN 1-85765-624-5

Table of Contents

Executive Summary

Back to Financial Index

Normally £311 - Price Slash! Our Price £50.00 - SAVE £229.00

TABLE OF CONTENTS

Executive Summary

Market Definition

INTRODUCTION

MARKET SECTORS

MARKET POSITION

MARKET TRENDS

Table 1: Share of Total Outstandings by Sector - Business Finance ( percent), May 1996

Table 2: Share of New Business by Financial Instrument Type - Business Customers ( percent), May 1996

Table 3: Share of New Business in Consumer Finance by Type ( percent), Year to May 1996

Table 4: The Share of Total UK Net Lending for Consumer Credit by Finance Houses ( percent), 1991-1995

Table 5: Business Finance For Expenditure on Plant and Equipment Through Finance Houses as a Proportion of Total UK Fixed Capital Investment at Current

Prices (£m and percent), 1991-1995

Table 6: Leading European Countries by Total Value of Business Finance for Equipment Leasing (ECU Million), 1993-1995

Table 7: New Business Consumer Finance by Type (£m), 1992-1995

Table 8: Overall Proportions of Leasing Versus Lease/Hire Purchase - Business Finance ( percent), 1991-1995

Market Size

THE TOTAL MARKET

BUSINESS FINANCE

CONSUMER FINANCE

Table 9: Total UK Market for Business and Consumer Finance at Current Prices (£m), 1991-1995

Table 10: Total UK Market for UK Business Finance at Current Prices (£m), 1991-1995

Table 11: Finance Penetration for Expenditure on Plant and Equipment Based on Current Membership of FLA at Current Prices (£m), 1991-1995

Table 12: New Business for Leasing and Lease/Hire Purchase by Customer Type at Current Prices (£m), 1995

Table 13: Distribution of New Business by Customer Type - Lease Versus Lease/Hire Purchase ( percent), 1991-1995

Table 14: Fixed Capital Investment and Finance Provided for Public Administration, Education and Health (£m and percent), 1991-1995

Table 15: Fixed Capital Investment and Finance Provided in the Manufacturing Sector (£m and percent), 1991-1995

Table 16: Fixed Capital Investment and Finance Provided for All Other Sectors (£m and percent), 1991-1995

Table 17: New Business for Leasing and Lease/Hire Purchase by Asset Type at Current Prices (£m), 1995

Table 18: Distribution of New Business by Asset Type - Lease Versus Lease/Hire Purchase ( percent), 1991-1995

Table 19: Fixed Capital Investment and Finance Provided for Plant and Machinery (£m and percent), 1991-1995

Table 20: Fixed Capital Investment and Finance Provided for Vehicles, Ships and Aircraft (£m and percent), 1991-1995

Table 21: Consolidated UK Market for Business Finance and Finance Provided at Current Prices (£m and percent), 1991-1995

Table 22: Primary Periods for Leasing and Lease/Hire Purchase ( percent of total finance provided), 1991-1995

Table 23: Business Finance in the Top Five European Countries by Asset Type (ECU million), 1993-1995

Table 24: Business Finance in the Top Five European Countries by Type of Customer, (ECU million) 1993-1995

Table 25: Share of Total Business Finance Made Available by Customer Type in Germany, Great Britain and France ( percent), 1993-1995

Table 26: UK Unsecured Gross Lending to Individuals (£m), 1991-1995

Table 27: UK Unsecured Gross Lending to Individuals by Key Market Segments (£m), 1991-1995

Table 28: Market Share of Total UK Unsecured Gross Lending to Individuals (£m and percent), FLA Members 1991-1995

Industry Background

RECENT HISTORY

INDUSTRY CONCENTRATION

THE PRIVATE FINANCE INITIATIVE (PFI)

HOME-COLLECTED CREDIT

RETAILERS' STORE CARDS

DISTRIBUTION

EMPLOYMENT

TRADE ASSOCIATIONS

Table 29: New Business Written by Company Size ( percent of FLA members), 1994 and 1995

Table 30: Ten Largest UK Finance Houses by Total Assets (£bn), 1994/1995 and 1995/1996

Table 31: Store Cards of Major UK Retailers, 1996

Table 32: Top Ten Finance Houses by Number Employed, 1992/1993-1995/1996

Competitor Analysis

THE MARKETPLACE

MARKET LEADERS

MARKET SHARES

ADVERTISING AND PROMOTION

Table 33: Profile of Lombard North Central Finance PLC (£m and percent), 1995/1996

Table 34: Profile of Forward Trust Ltd (£m and percent), 1992-1995

Table 35: Profile of Barclays Mercantile Business Finance Ltd (£m), 1994 and 1995

Table 36: Profile of Lloyds Bowmaker Finance Ltd (£m), 1991-1995

Table 37: Profile of Provident Financial PLC (£m), 1994 and 1995

Table 38: A Profile of Cattles PLC (£m), 1994 and 1995

Table 39: Net Loans and Advances to Customers by Selected Leading Providers of Business Finance and Consumer Credit (£m), 1994 and 1995

Table 40: Main Media Advertising Expenditure by Credit and Loan Companies (£000), Year Ended June 1996

Strengths, Weaknesses, Opportunities and Threats (SWOT)

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

Buying Behaviour

CONSUMER CREDIT

STORE CARDS

CREDIT EXPENDITURE

HOUSEHOLD EXPENDITURE

TYPE OF INDEBTEDNESS

Table 41: Composition of Consumer Credit in the UK ( percent), 1987-1994

Table 42: Use of Different Forms of Credit by Adults in Great Britain ( percent), 1993-1996

Table 43: Ownership of Retailer Store Cards by Adults in Great Britain, 1995 and 1996

Table 44: Retailer Credit Total Sales Breakdown (£m, 000 and percent), 1st Quarter 1992-1996

Table 45: Credit Expenditure as a percentage of Total Household Expenditure on Selected Items by Age of Head of Household ( percent), 1994/1995

Table 46: Weekly Consumer Credit Payments in Average UK Household (£), 1995

Table 47: Which, if Any, of the Following Debts Do You Have? by Sex and Age ( percent), 1995

Table 48: Which, If Any, of the Following Debts Do You Have by Social Class and Region ( percent), 1995

Outside Suppliers to the Industry

PERSONAL DATABASES

CREDIT SCORING

DATA PROTECTION

THE DETECT SYSTEM

CARD FRAUD SERVICES

Current Issues

SPENDING ON SERVICES

BASE RATES AND BORROWING

COMPANY DEVELOPMENTS

Forecasts

THE IMPACT OF A CHANGE OF GOVERNMENT

ECONOMIC AND FINANCIAL OUTLOOK

FORECASTS 1996 TO 2000

Table 49: UK Main Economic Indicators ( percent), 1996-2001

Table 50: Forecast Finance House Sales of Business and Consumer Finance at Constant 1996 Prices (£m), 1996-2000

Table 51: Forecast Finance House Sales of Business and Consumer Finance at Current Prices (£m), 1996-2000

Company Profiles

INTRODUCTION

DEFINITIONS

FURTHER INFORMATION

Further Sources

ASSOCIATIONS

PERIODICALS

DIRECTORIES

GENERAL SOURCES

HBI UK INFORMATION SOURCES

GOVERNMENT PUBLICATIONS

OTHER SOURCES

Back to Top

EXECUTIVE SUMMARY

As businesses and consumers increase spending and once more start to borrow, finance houses are enjoying booming business. In particular, sales of big ticket leasing for items of £5m or more are considered to be at the start of a period of substantial growth. At the same time in the consumer market, sales of unsecured personal loans and retailer store cards are buoyant.

By the end of 1996 at current prices, sales through finance houses are forecast to reach nearly £54bn, a year-on-year increase of 34.2 percent against 1995. An explosive rate of growth is forecast to continue until the second half of 1997, after which the pace is likely to moderate, with annual increases of between 10 percent and 12 percent over the following 3 years.

Key Note forecasts that by the year 2000 at current prices, sales of business and consumer finance will reach £92.8bn, an increase of almost 72 percent over 1996. The biggest growth is predicted in the sales of consumer finance (up 74.4 percent), which at £51.6bn represents 55.6 percent of the total. Over the same period, sales of finance for business will reach £41.2bn (up 69 percent).

In 1995, finance houses and other specialist lenders supplied 26.2 percent of the UK's consumer credit and 17.1 percent of its business finance. The total available market in that year was valued at £189.7bn, of which finance houses captured £40.2bn, a level of penetration of 21.2 percent which has increased from 16.5 percent (up 4.7 percent) since 1991.

Significant growth is reported in business finance for plant and machinery and commercial vehicles, and leasing is once more gaining in popularity, a reversal of the trend towards lease/hire purchase prevalent between 1992 and 1994. The star performers for 1995 in consumer finance were credit cards, unsecured personal loans and retail store cards.

The run up to the General Election due by 22nd May 1997 at the latest, is seen as a period of sustained growth for the finance house industry, followed possibly by a short-lived boom as potential house purchasers who have deferred purchases to await the outcome of the Election, move ahead before new legislation can be enacted. From the end of 1997, however, and for the following 3 years, the market is likely to return to a more traditional rate of progress.

Text © 1996 Key Note

Back to Top

Back To REPORTFINDER HOME PAGE

Ariadne - working together with our customers to enhance productivity and increase knowledge

© 1999 www.the-list.co.uk Ariadne

Last updated by Duncan Nottage 5th March 1999