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Market Data Sponsored by Market Data Asset finance new business grew by 10% in the UK in August 2022 Published: 10th October 2022 Share New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in August 2022 by 10% compared with the same month in 2021. In the first eight months of 2022, new business was 3% higher than in the same period in 2021. The business equipment finance and plant and machinery finance sectors reported new business up in August by 8% and 12% respectively, compared with the same month in 2021. Over the same period, commercial vehicle finance new business increased by 6%. Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “August saw the asset finance market report its strongest growth in new business since March of this year, driven by growth across several asset sectors. Demand for asset finance from SMEs remained buoyant as new lending to these businesses increased by 20% compared with August 2021. “We welcome the Government’s recent announcement focusing on growth through increased business investment. With as much as 40% of UK investment in machinery and equipment funded by the asset finance industry, we urge the Government to ensure that measures to promote investment such as the capital allowances regime create a level playing field and do not exclude leasing.” Aug 2022 % change on prev. year 3 months to Aug 2022 % change on prev. year 12 months to Aug 2022 % change on prev. year Total FLA asset finance (£m) 2,418 10 7,945 4 31,827 2 Total excluding high value (£m) 2,313 9 7,553 5 29,571 1 Data Extracts: By asset: Plant and machinery finance (£m) 611 12 1,969 4 7,554 10 Commercial vehicle finance (£m) 659 6 2,158 4 8,519 1 IT equipment finance (£m) 116 -15 310 -27 1,497 -26 Business equipment finance (£m) 148 8 461 -3 1,968 6 Car finance (£m) 608 8 2,166 4 8,677 1 Aircraft, ships and rolling stock finance (£m) 27 -30 76 2 310 -11 By channel: Direct finance (£m) 1,023 6 3,353 9 12,557 -5 Broker-introduced finance (£m) 571 13 1,774 9 6,928 7 Sales finance (£m) 720 10 2,426 -2 10,086 3 By product: Finance leasing (£m) 257 18 775 0 3,194 -8 Operating leasing (£m) 434 1 1,368 -9 5,872 -4 Lease/Hire purchase (£m) 1,412 8 4,701 9 18,132 6 Other finance (£m) 213 14 761 3 3,319 -1 Lisa Laverick Editor - Asset Finance Connect Sign up to our newsletter Featured Stories Corporate Member Market DataSmall businesses considering growth initiatives rises Market DataUK business confidence holds steady at 8-year high Corporate Member Market DataSMEs confidence grows with optimism for year ahead