Asset finance new business grew by 12% in November 2022

New figures released by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in November 2022 by 12% compared with the same month in 2021. In the 11 months to November 2022, new business was 5% higher than in the same period in 2021.

The commercial vehicle finance and business car finance sectors reported new business up in November by 10% and 35% respectively, compared with the same month in 2021. Business equipment finance new business grew by 13% over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “November saw the asset finance market report its seventh consecutive month of growth as the market continues to recover to more normal pre-covid levels of new business. New lending to SMEs increased by 11% in November and the industry is on track to report a record level of asset finance new business to SMEs in 2022 as a whole.

“Our latest figures show that the asset finance market is playing a vital role in supporting businesses of all sizes to invest in new equipment that improves efficiency as they face a difficult year of uncertainty about demand and a squeeze on business margins from higher costs and interest rates.”

	Nov 2022	% change on prev yr	3 mths to Nov 22	% change on prev yr	12 mths to Nov 22	% change on prev yr
Total FLA asset finance (£m)	2,803	12	8,789	13	32,842	5
Total excluding high value (£m)	2,703	15	8,433	16	30,728	5
Data Extracts:
By asset:
Plant and machinery finance (£m)	590	-4	1,936	8	7,721	7
Commercial vehicle finance (£m)	810	10	2,338	9	8,724	4
IT equipment finance (£m)	98	33	370	6	1,525	-17
Business equipment finance (£m)	156	13	496	2	1,979	7
Car finance (£m)	884	35	2,696	25	9,226	9
Aircraft, ships and rolling stock finance (£m)	30	205	71	47	333	-4
By channel:
Direct finance (£m)	1,192	25	3,741	23	13,255	4
Broker-introduced finance (£m)	623	14	1,987	18	7,248	10
Sales finance (£m)	888	4	2,705	5	10,224	2
By product:
Finance leasing (£m)	276	18	902	16	3,317	3
Operating leasing (£m)	626	30	1,848	16	6,137	-2
Lease/Hire purchase (£m)	1,563	5	4,873	12	18,688	8
Other finance (£m)	259	33	885	22	3,459	6