Asset finance new business grew by 19% in August 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 August 2023 by 19% compared with the same month in 2022. In the first eight months 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 August by 94% and 12% respectively, compared with the same month in 2022. By contrast, the plant and machinery finance sector reported a fall in new business of 9% over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “Further double-digit growth in asset finance new business in August was driven by strong performances by the vehicle finance sectors. The rebound in new lending provided to large businesses continued, increasing by 53% compared with August 2022, while new lending to SMEs grew by 4%.

“FLA asset finance providers remain cautiously optimistic about future growth prospects with almost three-quarter of respondents to the Q3 2023 Industry Outlook Survey expecting some increase in new business over the next twelve months.”

	Aug 2023	% change on prev yr	3 mths to Aug 23	% change on prev yr	12 mths to Aug 23	% change on prev yr
Total FLA asset finance (£m)	2,981	19	9,569	17	37,416	15
Total excluding high value (£m)	2,872	20	9,248	19	35,783	18
Data Extracts:
By asset:
Plant and machinery finance (£m)	575	-9	1,856	-9	7,929	3
Commercial vehicle finance (£m)	756	12	2,539	16	9,737	13
IT equipment finance (£m)	106	-10	317	0	1,344	-11
Business equipment finance (£m)	154	2	491	4	1,931	-3
Car finance (£m)	1,019	66	3,276	50	12,131	39
Aircraft, ships and rolling stock finance (£m)	47	68	115	46	350	10
By channel:
Direct finance (£m)	1,368	30	4,327	26	16,369	27
Broker-introduced finance (£m)	642	6	2,075	11	8,373	17
Sales finance (£m)	863	18	2,846	16	11,041	8
By product:
Finance leasing (£m)	292	13	933	19	3,537	9
Operating leasing (£m)	752	74	2,333	71	8,387	43
Lease/Hire purchase (£m)	1,482	1	5,017	3	20,299	10
Other finance (£m)	355	51	1,005	24	3,960	11