Market Data

Asset finance new business grew by 17% in October 2022

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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 2022 by 17% compared with the same month in 2021. In the ten months to October 2022, new business was 5% higher than in the same period in 2021.

The plant and machinery finance sector reported new business up in October by 23% compared with the same month in 2021. Over the same period, business equipment finance and commercial vehicle finance new business grew by 13% and 11% respectively.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “In October, the asset finance market reported its strongest rate of new business growth since June 2021, with new lending to SMEs increasing at a double-digit rate. We expect asset finance new business to reach £32.5 billion in 2022 as a whole, 4% higher than in 2021, but 9% lower than in 2019 which largely reflects the shortages of asset to finance.

“Despite the challenging outlook for demand over the next year, businesses are committed to investing in energy-efficient equipment and machinery. Demand for finance to support business-critical investment combined with the gradual easing of supply shortages should support asset finance new business volumes over the next twelve months.”

  Oct 2022 % change on prev. year 3 months to Oct 2022 % change on prev. year 12 months to Oct 2022 % change on prev. year
Total FLA asset finance (£m)   2,887  17  8,415  12  32,545  4
Total excluding high value (£m)   2,778  21  8,054  14  30,376  4
Data Extracts:
By asset
Plant and machinery finance (£m)  658 23 1,958 14 7,743 10
Commercial vehicle finance (£m) 776 11 2,191 8 8,651 3
IT equipment finance (£m)  76 -29 389 -6 1,501 -22
Business equipment finance (£m) 157 13 490 1 1,961 5
Car finance (£m)  882 31 2,422 17 8,999 6

Aircraft, ships and rolling stock finance (£m) 

10 -57 67 -13 312 -10
By channel:
Direct finance (£m)  1,322 37 3,573 17 13,016 1
Broker-introduced finance (£m)  642 16 1,943 18 7,174 10
Sales finance (£m)  825 4 2,539 7 10,186 3
By product:
Finance leasing (£m)  298 7 884 16 3,276 0
Operating leasing (£m)  592 30 1,656 8 5,992 -4

Lease/Hire purchase (£m) 

1,625 19 4,732 14 18,612 9
Other finance (£m)  295 24 839 17 3,395 3