Asset finance new business grew by 9% in July 2024
New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in July 2024 by 9% compared with the same month in 2023. In the seven months to July 2024, new business was 5% higher than in the same period in 2023.
The commercial vehicle finance sector reported new business up in July by 11% compared with the same month in 2023. New business in the plant and machinery finance sector increased by 14% over the same period.
Commenting on the figures, Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The asset finance market made a positive start to the third quarter of 2024 with broad-based growth in the value of new business. New lending to SMEs and larger businesses increased in July by 10% and 6% respectively, compared with July 2023.
“FLA’s latest figures also showed higher levels of new business provided to business across all major industry sectors including manufacturing, services and construction.
“The asset finance industry plays a key role in helping businesses of all sizes and across all sectors of the economy to invest in machinery and equipment and we therefore urge the government to include leasing in the full expensing regime at the next Budget in October.”
| Jul
2024 |
% change on prev. year | 3 months to
Jul 2024 |
% change on prev. year | 12 months to
Jul 2024 |
% change on prev. year | |
| Total FLA asset finance (£m) | 3,398 | 9 | 10,070 | 3 | 39,711 | 7 |
| Total excluding high value (£m) | 3,205 | 6 | 9,525 | 1 | 37,715 | 6 |
| Data Extracts:
By asset: |
||||||
| Plant and machinery finance (£m) | 713 | 14 | 2,011 | 2 | 7,453 | -9 |
| Commercial vehicle finance (£m) | 937 | 11 | 2,696 | 3 | 10,521 | 8 |
| IT equipment finance (£m) | 80 | -27 | 330 | 18 | 1,219 | -10 |
| Business equipment finance (£m) | 160 | 1 | 421 | -12 | 1,770 | -8 |
| Car finance (£m) | 1,089 | 6 | 3,348 | 2 | 13,768 | 18 |
| Aircraft, ships and rolling stock finance (£m) | 21 | -7 | 82 | -5 | 347 | 5 |
|
By channel: |
||||||
| Direct finance (£m) | 1,420 | 3 | 4,157 | -3 | 17,176 | 7 |
| Broker-introduced finance (£m) | 745 | 8 | 2,276 | 6 | 8,479 | 2 |
| Sales finance (£m) | 1,040 | 11 | 3,091 | 5 | 12,060 | 8 |
|
By product: |
||||||
| Finance leasing (£m) | 254 | -14 | 821 | -5 | 3,370 | -4 |
| Operating leasing (£m) | 852 | 10 | 2,615 | 11 | 10,058 | 22 |
| Lease/Hire purchase (£m) | 1,769 | 10 | 5,225 | -1 | 20,587 | 2 |
| Other finance (£m) | 415 | 15 | 1,004 | 2 | 4,300 | 11 |
