New figures released by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in February 2023 by 20% compared with the same month in 2022. In the first two months of 2023, new business was 13% higher than in the same period in 2022.
The business new car and commercial vehicle finance sectors reported new business up in February by 46% and 24% respectively, compared with the same month in 2022. The plant and machinery finance sector also reported new business growth of 18% 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 tenth consecutive month of new business growth in February which was more broad-based than in recent months, albeit compared with a relatively subdued February 2022. Asset finance new business provided to SMEs and larger businesses increased in February by 16% and 28% respectively.
“The latest figures clearly demonstrate that the industry is continuing to support businesses to invest and grow in a challenging economic environment. Among SMEs, the success rate is high when applying for asset finance, with 95% offered a facility. Furthermore, 93% of SMEs applying for asset finance were satisfied with the outcome of the process compared with only 54% of those applying for a bank loan.”
| Feb 2023 |
% change on prev yr |
3 mths to Feb 2023 |
% change on prev yr |
12 mths to Feb 2023 |
% change on prev yr | |
|---|---|---|---|---|---|---|
|
Total FLA asset finance (£m) |
2,609 | 20 | 8,458 | 15 | 34,457 | 8 |
| Total excluding high value (£m) | 2,430 | 17 | 8,032 | 18 | 32,513 | 9 |
| Data Extracts: | ||||||
| By asset: | ||||||
| Plant and machinery finance (£m) | 654 | 18 | 1,836 | 7 | 7,896 | 7 |
| Commercial vehicle finance (£m) | 734 | 24 | 2,153 | 13 | 8,997 | 7 |
| IT equipment finance (£m) | 99 | 19 | 363 | 16 | 1,588 | 3 |
| Business equipment finance (£m) | 144 | -5 | 442 | -10 | 1,946 | 1 |
| Car finance (£m) | 715 | 26 | 2,713 | 38 | 10,059 | 16 |
|
Aircraft, ships and rolling stock finance (£m) |
11 | -59 | 78 | -38 | 294 | -25 |
| By channel: | ||||||
| Direct finance (£m) | 1,099 | 26 | 3,826 | 32 | 14,450 | 13 |
| Broker-introduced finance (£m) | 604 | 16 | 1.831 | 16 | 7,664 | 12 |
| Sales finance (£m) | 727 | 6 | 2,374 | 2 | 10,399 | 0 |
| By product: | ||||||
| Finance leasing (£m) | 242 | 10 | 863 | 16 | 3,464 | 9 |
| Operating leasing (£m) | 556 | 45 | 1,956 | 42 | 6,714 | 9 |
| Lease/Hire purchase (£m) | 1,435 | 14 | 4,432 | 11 | 19,350 | 10 |
| Other finance (£m) | 287 | 15 | 950 | -4 | 3,709 | 1 |
