Asset finance new business grew by 17% in October 2022
New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in October 2022 by 17% compared with the same month in 2021. In the ten months to October 2022, new business was 5% higher than in the same period in 2021.
The plant and machinery finance sector reported new business up in October by 23% compared with the same month in 2021. Over the same period, business equipment finance and commercial vehicle finance new business grew by 13% and 11% respectively.
Commenting on the figures, Geraldine Kilkelly, director of research and chief economist at the FLA, said: “In October, the asset finance market reported its strongest rate of new business growth since June 2021, with new lending to SMEs increasing at a double-digit rate. We expect asset finance new business to reach £32.5bn in 2022 as a whole, 4% higher than in 2021, but 9% lower than in 2019 which largely reflects the shortages of asset to finance.
“Despite the challenging outlook for demand over the next year, businesses are committed to investing in energy-efficient equipment and machinery. Demand for finance to support business-critical investment combined with the gradual easing of supply shortages should support asset finance new business volumes over the next twelve months.”
|% change on prev. year||3 months to
|% change on prev. year||12 months to
|% change on prev. year|
|Total FLA asset finance (£m)||2,887||17||8,415||12||32,545||4|
|Total excluding high value (£m)||2,778||21||8,054||14||30,376||4|
|Plant and machinery finance (£m)||658||23||1,958||14||7,743||10|
|Commercial vehicle finance (£m)||776||11||2,191||8||8,651||3|
|IT equipment finance (£m)||76||-29||389||-6||1,501||-22|
|Business equipment finance (£m)||157||13||490||1||1,961||5|
|Car finance (£m)||882||31||2,422||17||8,999||6|
|Aircraft, ships and rolling stock finance (£m)||10||-57||67||-13||312||-10|
|Direct finance (£m)||1,322||37||3,573||17||13,016||1|
|Broker-introduced finance (£m)||642||16||1,943||18||7,174||10|
|Sales finance (£m)||825||4||2,539||7||10,186||3|
|Finance leasing (£m)||298||7||884||16||3,276||0|
|Operating leasing (£m)||592||30||1,656||8||5,992||-4|
|Lease/Hire purchase (£m)||1,625||19||4,732||14||18,612||9|
|Other finance (£m)||295||24||839||17||3,395||3|