Market Data

Asset finance new business grew by 14% in July 2023

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New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in July 2023 by 14% compared with the same month in 2022. In the seven months to July 2023, new business was also 14% higher than in the same period in 2022.

The business new car finance sector reported new business up in July by 59% compared with the same month in 2022. The business equipment finance and commercial vehicle finance sectors reported new business growth of 15% and 12% respectively, over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The asset finance market has reported double-digit new business growth in eleven of the last twelve months. Growth in July was more broad-based with higher levels of new business in the equipment finance as well as the vehicle finance sectors.

“In the twelve months to July 2023, asset finance new business provided to SMEs reached a record level of £24.4 billion. There has been increased use of leasing and hire purchase by larger SMEs with 10 or more employees. The success rate of SMEs who applied for asset finance since the beginning of 2022 was high, with 93% of those businesses offered and taking what they applied for.”

  July 2023 % change on prev. year 3 months to Jul 2023 % change on prev. year 12 months to Jul 2023 % change on prev. year
Total FLA asset finance (£m)  3,092  14 9,696 15 36,919 15
Total excluding high value (£m)  2,985  15  9,318 17 35,289 18
Data Extracts:
By asset:
Plant and machinery finance (£m)  613  -10 1,918 -9 7,989 5
Commercial vehicle finance (£m)  838  12 2,593 14 9,661 13
IT equipment finance (£m)  109  27 280 -4 1,356 -12
Business equipment finance (£m)  160  15 478 -4 1,927 -3
Car finance (£m)  1,027 36 3,302 42 11,728 35
Aircraft, ships and rolling stock finance (£m)  23  46 87 31 331 1
By channel:
Direct finance (£m)  1,379  23  4,288 23 16,040 25
Broker-introduced finance (£m)  690  12 2,147 12 8,342 18
Sales finance (£m)  915  8 2,883 11 10,907 8
By product:
Finance leasing (£m)  306  26 876 11 3,512 10
Operating leasing (£m)  755  61 2,281 63 8,065 38
Lease/Hire purchase (£m)  1,610  -1 5,259 4 20,283 11
Other finance (£m)  346  34 962 14 3,822 8