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Market Data Sponsored by Market Data Asset finance new business grew by 14% in March 2023 Published: 9th May 2023 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 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 Lisa Laverick Editor - Asset Finance Connect Sign up to our newsletter Featured Stories Corporate Member Market Data90% of SMEs see sustainability shaping future operations Market DataUK business activity slows in October as regional growth falters Market DataConsumer car finance new business grew by 4% in September