Asset finance grew by 14% in July

12th September 2023

New figures released by the Finance & Leasing Association (FLA) have shown that total asset finance new business (primarily leasing and hire purchase) grew in July 2023 by 14% compared with the same month in 2022. In the seven months to July 2023, new business was also 14% higher than in the same period in 2022. 

The business new car finance sector reported new business up in July by 59% compared with the same month in 2022. The business equipment finance and commercial vehicle finance sectors reported new business growth of 15% and 12% respectively, over the same period. 

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The asset finance market has reported double-digit new business growth in eleven of the last twelve months.  Growth in July was more broad-based with higher levels of new business in the equipment finance as well as the vehicle finance sectors.  ”

“In the twelve months to July 2023, asset finance new business provided to SMEs reached a record level of £24.4 billion. There has been increased use of leasing and hire purchase by larger SMEs with 10 or more employees. The success rate of SMEs who applied for asset finance since the beginning of 2022 was high, with 93% of those businesses offered and taking what they applied for.” 

Jul

 2023

% change on prev. year

3 months to

Jul

2023

% change on prev. year

12 months to

Jul 2023

% change on prev. year

Total FLA asset finance (£m)

3,092

14

9,696

15

36,919

15

Total excluding high value (£m)

2,985

15

9,318

17

35,289

18

 

Data Extracts:

 

By asset:

Plant and machinery finance (£m)

613

-10

1,918

-9

7,989

5

Commercial vehicle finance (£m)

838

12

2,593

14

9,661

13

IT equipment finance (£m)

109

27

280

-4

1,356

-12

Business equipment finance (£m)

160

15

478

-4

1,927

-3

Car finance (£m)

1,027

36

3,302

42

11,728

35

Aircraft, ships and rolling stock finance (£m)

23

46

87

31

331

1

 

By channel:

Direct finance (£m)

1,379

23

4,288

23

16,040

25

Broker-introduced finance (£m)

690

12

2,147

12

8,342

18

Sales finance (£m)

915

8

2,883

11

10,907

8

 

By product:

Finance leasing (£m)

306

26

876

11

3,512

10

Operating leasing (£m)

755

61

2,281

63

8,065

38

Lease/Hire purchase (£m)

1,610

-1

5,259

4

20,283

11

Other finance (£m)

346

34

962

14

3,822

8