Credit, Collections & Insolvency News
New figures released 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 £32.5 billion 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.”
|
Oct 2022 |
% change on prev. year |
3 months to Oct 2022 |
% change on prev. year |
12 months to Oct 2022 |
% 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 |
|
|
|
|
|
|
|
|
|
Data Extracts:
By asset: |
|
|
|
|
|
|
|
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 |
|
By channel: |
|
|
|
|
|
|
|
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 |
|
By product: |
|
|
|
|
|
|
|
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 |
