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 2023 by 11% compared with the same month in 2022. In the ten months to October 2023, new business was 14% higher than in the same period in 2022.
The business new car finance and commercial vehicle finance sectors reported new business up in October by 53% and 8% respectively, compared with the same month in 2022. The plant and machinery finance sector reported a fall in new business of 17% over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The asset finance market returned to double-digit new business growth in October with further strong performances from the vehicle finance sectors. New asset finance lending to SMEs grew by 6% compared with the same month in 2022, while to larger businesses it increased by 15%.
“2023 is set to be a record year for the asset finance industry as new business is expected to reach more than £38 billion. The industry directly supports the real economy by providing finance to businesses of all sizes which funds as much as 40% of UK investment in machinery, equipment and vehicles.
“Asset finance is playing a vital role in funding the investment needed to raise productivity while helping the UK transition to net zero which will ultimately raise economic growth and household living standards.
| Oct 23 |
% change on prev yr |
3 mths to Oct 23 |
% change on prev yr |
12 mths to Oct 23 |
% change on prev yr | |
|---|---|---|---|---|---|---|
| Total FLA asset finance (£m) | 3,303 | 11 | 9,673 | 12 | 37,942 | 14 |
| Total excluding high value (£m) | 3,159 | 10 | 9,293 | 12 | 36,293 | 17 |
| Data Extracts: | ||||||
| By asset: | ||||||
| Plant and machinery finance (£m) | 568 | -17 | 1,702 | -16 | 7,660 | -3 |
| Commercial vehicle finance (£m) | 864 | 8 | 2,493 | 11 | 9,900 | 13 |
| IT equipment finance (£m) | 73 | -6 | 287 | -27 | 1,249 | -17 |
| Business equipment finance (£m) | 161 | 0 | 489 | -2 | 1,918 | -4 |
| Car finance (£m) | 1,229 | 38 | 3,529 | 44 | 12,821 | 41 |
| Aircraft, ships and rolling stock finance (£m) | 18 | 54 | 84 | 20 | 345 | 8 |
| By channel: | ||||||
| Direct finance (£m) | 1,500 | 10 | 4,323 | 17 | 16,695 | 25 |
| Broker-introduced finance (£m) | 698 | 1 | 2,030 | -2 | 8,304 | 11 |
| Sales finance (£m) | 962 | 15 | 2,941 | 15 | 11,294 | 10 |
| By product: | ||||||
| Finance leasing (£m) | 300 | -1 | 897 | 0 | 3,503 | 6 |
| Operating leasing (£m) | 768 | 31 | 2,360 | 43 | 8,784 | 47 |
| Lease/Hire purchase (£m) | 1,744 | 3 | 5,015 | 2 | 20,397 | 7 |
| Other finance (£m) | 353 | 11 | 1,044 | 14 | 3,968 | 8 |
