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Market Data Sponsored by Market Data Asset finance new business fell by 1% in December 2023 Published: 13th February 2024 Share New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) fell in December 2023 by 1% compared with the same month in 2022. However, in 2023, as a whole, new business was 12% higher than in the same period in 2022, reaching a record £38 billion. The business new car finance and commercial vehicle finance sectors reported new business up in December by 8% and 1% respectively, compared with the same month in 2022. The plant and machinery finance sector reported new business 22% lower 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 its first monthly contraction in new business, year-on-year, since April 2022. “Despite a slower final quarter, annual asset finance new business reached a record level of £38.3 billion in 2023. Growth last year was driven by the vehicle finance sectors while the machinery and equipment finance sectors reported lower new business levels compared with 2022. “The industry supported investment by businesses of all sizes as new lending to SMEs grew by 7% to a new high of £23.5 billion, while new lending to larger businesses increased by 19% to £13.3 billion, the highest level since 2019. “The asset finance industry has a proven track record in supporting the real economy by financing as much as 40% of UK investment in vehicles, machinery, and equipment. It is playing a key role in supporting businesses to make the transition to net zero. We continue to urge the Government to extend the full expensing regime to include leasing in the Spring Budget.” Dec 2023 % change on prev. year 3 months to Dec 2023 % change on prev. year 12 months to Dec 2023 % change on prev. year Total FLA asset finance (£m) 3,218 -1 9,770 7 38,283 12 Total excluding high value (£m) 2,990 -4 9,207 5 36,447 14 Data Extracts: By asset: Plant and machinery finance (£m) 541 -22 1,671 -16 7,462 -6 Commercial vehicle finance (£m) 753 1 2,462 4 9,922 11 IT equipment finance (£m) 130 -29 300 -16 1,195 -24 Business equipment finance (£m) 148 -15 458 -7 1,882 -4 Car finance (£m) 1,196 9 3,624 26 13,224 37 Aircraft, ships and rolling stock finance (£m) 13 -53 56 -21 324 -10 By channel: Direct finance (£m) 1,428 -4 4,362 7 16,847 20 Broker-introduced finance (£m) 613 -9 2,001 -2 8,260 7 Sales finance (£m) 948 0 2,844 7 11,340 1 By product: Finance leasing (£m) 330 -12 934 -3 3,481 2 Operating leasing (£m) 856 8 2,475 23 9,072 44 Lease/Hire purchase (£m) 1,524 -5 4,953 1 20,380 5 Other finance (£m) 417 16 1,063 11 4,035 7 Lisa Laverick Editor - Asset Finance Connect Sign up to our newsletter Featured Stories Market DataSMEs hit by £9 billion in lost interest, research reveals Market DataSurvey highlights resilience and optimism of UK SMEs Market DataUK corporate insolvencies drop 8.9% in August