Asset finance grew by 14% in March 2023

10th May 2023

New figures released by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in March 2023 by 14% compared with the same month in 2022. In Q1 2023, new business was also 14% higher than in Q1 2022.

The business new car and commercial vehicle finance sectors reported new business up in March by 54% and 23% respectively, compared with the same month in 2022. The plant and machinery finance sector reported new business growth of 20% over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The asset finance market reported a record level of monthly new business in March of more than £4 billion.  Inflationary pressures have contributed to higher average advances across asset finance sectors, but volumes have also either grown or been maintained.”

“Our latest figures show the vital support the asset finance industry is providing for business investment across the UK economy. New asset finance lending to SMEs remained robust, growing by 22% compared with March 2022.  New lending to all major industry sectors – manufacturing, construction, agriculture, and services – also increased in March.”

Mar

 2023

% change on prev. year

3 months to

Mar 2023

% change on prev. year

12 months to

Mar 2023

% change on prev. year

Total FLA asset finance (£m)

4,216

14

9,458

14

34,979

8

Total excluding high value (£m)

4,018

27

8,967

21

33,370

11

Data Extracts:

 

By asset:

Plant and machinery finance (£m)

931

20

2,089

13

8,052

8

Commercial vehicle finance (£m)

1,098

23

2,517

19

9,200

9

IT equipment finance (£m)

143

-58

322

-37

1,387

-18

Business equipment finance (£m)

200

-14

469

-7

1,913

-3

Car finance (£m)

1,412

46

3,026

39

10,502

20

Aircraft, ships and rolling stock finance (£m)

37

47

86

-38

306

-23

 

By channel:

Direct finance (£m)

1,761

40

4,107

33

14,950

17

Broker-introduced finance (£m)

912

22

2,085

19

7,825

14

Sales finance (£m)

1,345

17

2,775

8

10,595

2

 

By product:

Finance leasing (£m)

359

-8

846

3

3,433

6

Operating leasing (£m)

952

56

2,110

51

7,052

15

Lease/Hire purchase (£m)

2,384

15

5,235

12

19,662

10

Other finance (£m)

376

-19

967

-12

3,620

-3