Asset finance new business grew by 17% in October 2022

New figures released today 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.”