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.”

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