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Market Data Sponsored by Market Data Asset finance new business grew by 18% in June Published: 10th August 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 June 2023 by 18% compared with the same month in 2022. In the first half of 2023, new business was 15% higher than in the same period in 2022. The business new car finance and commercial vehicle finance sectors reported new business up in June by 89% and 23% respectively, compared with the same month in 2022. The plant and machinery finance sector reported a fall in new business of 7% 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 strong performance in the first half of 2023 driven by a rebound in the vehicle finance markets as supply shortages eased. The high inflationary environment has led to growth in average advances, but we have also seen growth in volumes. “The industry supports businesses of all sizes and across all industry sectors to invest in vehicles, equipment and machinery that is vital to building a more sustainable future. The first half of 2023 saw new lending to SMEs increase by 13% and to larger businesses by 15%. Over that period, new asset finance lending to businesses in the services sector grew by 14%, in the construction sector increased by 19%, and in the manufacturing sector grew by 21%.” June 2023 % change on prev. year 3 months to Jun 2023 % change on prev. year 12 months to Jun 2023 % change on prev. year Total FLA asset finance (£m) 3,484 18 9,476 15 36,539 14 Total excluding high value (£m) 3,379 22 9,038 15 34,891 17 Data Extracts: By asset: Plant and machinery finance (£m) 673 -7 1,923 -7 8,058 6 Commercial vehicle finance (£m) 949 23 2,440 10 9,571 12 IT equipment finance (£m) 102 -10 250 -18 1,332 -16 Business equipment finance (£m) 174 -3 461 -5 1,906 -5 Car finance (£m) 1,231 50 3,224 41 11,456 33 Aircraft, ships and rolling stock finance (£m) By channel: Direct finance (£m) 1,565 24 4,129 21 15,782 25 Broker-introduced finance (£m) 746 16 2,102 12 8,269 18 Sales finance (£m) 1,068 22 2,806 10 10,840 7 By product: Finance leasing (£m) 343 22 801 0 3,449 7 Operating leasing (£m) 823 77 2,134 54 7,778 32 Lease/Hire purchase (£m) 1,927 10 5,216 6 20,300 12 Other finance (£m) 286 -9 951 14 3,736 3 Lisa Laverick Editor - Asset Finance Connect Sign up to our newsletter Featured Stories Corporate Member Market DataSmall businesses considering growth initiatives rises Market DataUK business confidence holds steady at 8-year high Corporate Member Market DataSMEs confidence grows with optimism for year ahead