Asset finance new business grew by 14% in March 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 March 2023 by 14% compared with the same month in 2022. In Q1 2023, new business was also 14% higher than in Q1 2022.

The business new car and commercial vehicle finance sectors reported new business up in March by 54% and 23% respectively, compared with the same month in 2022. The plant and machinery finance sector reported new business growth of 20% 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 a record level of monthly new business in March of more than £4 billion. Inflationary pressures have contributed to higher average advances across asset finance sectors, but volumes have also either grown or been maintained.

“Our latest figures show the vital support the asset finance industry is providing for business investment across the UK economy. New asset finance lending to SMEs remained robust, growing by 22% compared with March 2022. New lending to all major industry sectors – manufacturing, construction, agriculture, and services – also increased in March.”

	March 2023	% change on prev yr	3 mths to March 2023	% change on prev yr	12 mths to March 2023	% change on prev yr
Total FLA asset finance (£m)	4,216	14	9,458	14	34,979	8
Total excluding high value (£m)	4,018	27	8,967	21	33,370	11
Data Extracts:
By asset:
Plant and machinery finance (£m)	931	20	2,089	13	8,052	8
Commercial vehicle finance (£m)	1,098	23	2,517	19	9,200	9
IT equipment finance (£m)	143	-58	322	-37	1,387	-18
Business equipment finance (£m)	200	-14	469	-7	1,913	-3
Car finance (£m)	1,412	46	3,026	39	10,502	20
Aircraft, ships and rolling stock finance (£m)	37	47	86	-38	306	-23
By channel:
Direct finance (£m)	1,761	40	4,107	33	14,950	17
Broker-introduced finance (£m)	912	22	2,085	19	7,825	14
Sales finance (£m)	1,345	17	2,775	8	10,595	2
By product:
Finance leasing (£m)	359	-8	846	3	3,433	6
Operating leasing (£m)	952	56	2,110	51	7,052	15
Lease/Hire purchase (£m)	2,384	15	5,235	12	19,662	10
Other finance (£m)	376	-19	967	-12	3,620	-3