Market Data

Asset finance new business grew by 20% in February 2023

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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

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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