Asset finance new business grew by 11% in October 2023

New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in October 2023 by 11% compared with the same month in 2022. In the ten months to October 2023, new business was 14% higher than in the same period in 2022.

The business new car finance and commercial vehicle finance sectors reported new business up in October by 53% and 8% respectively, compared with the same month in 2022. The plant and machinery finance sector reported a fall in new business of 17% over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The asset finance market returned to double-digit new business growth in October with further strong performances from the vehicle finance sectors. New asset finance lending to SMEs grew by 6% compared with the same month in 2022, while to larger businesses it increased by 15%.

“2023 is set to be a record year for the asset finance industry as new business is expected to reach more than £38 billion. The industry directly supports the real economy by providing finance to businesses of all sizes which funds as much as 40% of UK investment in machinery, equipment and vehicles.

“Asset finance is playing a vital role in funding the investment needed to raise productivity while helping the UK transition to net zero which will ultimately raise economic growth and household living standards.

	Oct 23	% change on prev yr	3 mths to Oct 23	% change on prev yr	12 mths to Oct 23	% change on prev yr
Total FLA asset finance (£m)	3,303	11	9,673	12	37,942	14
Total excluding high value (£m)	3,159	10	9,293	12	36,293	17
Data Extracts:
By asset:
Plant and machinery finance (£m)	568	-17	1,702	-16	7,660	-3
Commercial vehicle finance (£m)	864	8	2,493	11	9,900	13
IT equipment finance (£m)	73	-6	287	-27	1,249	-17
Business equipment finance (£m)	161	0	489	-2	1,918	-4
Car finance (£m)	1,229	38	3,529	44	12,821	41
Aircraft, ships and rolling stock finance (£m)	18	54	84	20	345	8
By channel:
Direct finance (£m)	1,500	10	4,323	17	16,695	25
Broker-introduced finance (£m)	698	1	2,030	-2	8,304	11
Sales finance (£m)	962	15	2,941	15	11,294	10
By product:
Finance leasing (£m)	300	-1	897	0	3,503	6
Operating leasing (£m)	768	31	2,360	43	8,784	47
Lease/Hire purchase (£m)	1,744	3	5,015	2	20,397	7
Other finance (£m)	353	11	1,044	14	3,968	8