Asset finance new business grew by 17% in October 2022

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