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 November 2022 by 12% compared with the same month in 2021. In the eleven months to November 2022, new business was 5% higher than in the same period in 2021.
The commercial vehicle finance and business car finance sectors reported new business up in November by 10% and 35% respectively, compared with the same month in 2021. Business equipment finance new business grew by 13% over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “November saw the asset finance market report its seventh consecutive month of growth as the market continues to recover to more normal pre-covid levels of new business. New lending to SMEs increased by 11% in November and the industry is on track to report a record level of asset finance new business to SMEs in 2022 as a whole.”
“Our latest figures show that the asset finance market is playing a vital role in supporting businesses of all sizes to invest in new equipment that improves efficiency as they face a difficult year of uncertainty about demand and a squeeze on business margins from higher costs and interest rates.”
|
Nov 2022 |
% change on prev. year |
3 months to Nov 2022 |
% change on prev. year |
12 months to Nov 2022 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
2,803 |
12 |
8,789 |
13 |
32,842 |
5 |
| Total excluding high value (£m) |
2,703 |
15 |
8,433 |
16 |
30,728 |
5 |
|
|
|
|
|
|
|
|
| Data Extracts:
By asset: |
|
|
|
|
|
|
| Plant and machinery finance (£m) |
590 |
-4 |
1,936 |
8 |
7,721 |
7 |
| Commercial vehicle finance (£m) |
810 |
10 |
2,338 |
9 |
8,724 |
4 |
| IT equipment finance (£m) |
98 |
33 |
370 |
6 |
1,525 |
-17 |
| Business equipment finance (£m) |
156 |
13 |
496 |
2 |
1,979 |
7 |
| Car finance (£m) |
884 |
35 |
2,696 |
25 |
9,226 |
9 |
| Aircraft, ships and rolling stock finance (£m) |
30 |
205 |
71 |
47 |
333 |
-4 |
|
By channel: |
|
|
|
|
|
|
| Direct finance (£m) |
1,192 |
25 |
3,741 |
23 |
13,255 |
4 |
| Broker-introduced finance (£m) |
623 |
14 |
1,987 |
18 |
7,248 |
10 |
| Sales finance (£m) |
888 |
4 |
2,705 |
5 |
10,224 |
2 |
|
By product: |
|
|
|
|
|
|
| Finance leasing (£m) |
276 |
18 |
902 |
16 |
3,317 |
3 |
| Operating leasing (£m) |
626 |
30 |
1,848 |
16 |
6,137 |
-2 |
| Lease/Hire purchase (£m) |
1,563 |
5 |
4,873 |
12 |
18,688 |
8 |
| Other finance (£m) |
259 |
33 |
885 |
22 |
3,459 |
6 |
