Asset finance new business grew by 14% in July 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 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