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Market Data Sponsored by Market Data Asset finance new business grew by 2% in July 2022 Published: 8th September 2022 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 July 2022 by 2% compared with the same month in 2021. In the first seven months of 2022, new business remained 2% higher than in the same period in 2021. The commercial vehicle finance sector reported new business up in July by 2% compared with the same month in 2021, while new business for plant and machinery was at a similar level to July 2021. By contrast, the business equipment finance and IT equipment finance sectors reported falls in new business of 22% and 37% respectively, 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 further new business growth in July despite an increasingly uncertain economic outlook. There were pockets of strong growth as the construction equipment finance sector reported new business up by 10% in July. The new heavy commercial vehicle finance and used commercial vehicle finance sectors also reported strong double-digit growth of 41% and 69% respectively. “Asset finance continues to play a crucial role in supporting SMEs to recover following the pandemic, with new finance provided to these businesses increasing by 13% in July. As the Government considers ways of helping businesses through the worst inflationary environment since the 1970s, we urge it to ensure that any measures to support business investment do not exclude leasing.” July 2022 % change on prev. year 3 months to Jul 2022 % change on prev. year 12 months to Jul 2022 % change on prev. year Total FLA asset finance (£m) 2,650 2 8,215 3 31,613 2 Total excluding high value (£m) 2,524 6 7,783 4 29,384 1 Data extracts: By asset: Plant and machinery finance (£m) 651 0 2,045 6 7,491 10 Commercial vehicle finance (£m) 737 2 2,241 5 8,482 2 IT equipment finance (£m) 83 -37 284 -30 1,518 -27 Business equipment finance (£m) 137 -22 491 4 1,957 6 Car finance (£m) 747 11 2,310 3 8,633 1 Aircraft, ships and rolling stock finance (£m) 14 2 63 -27 322 -3 By channel: Direct finance (£m) 1,101 14 3,391 8 12,503 -4 Broker-introduced finance (£m) 583 9 1,826 10 6,863 8 Sales finance (£m) 840 -4 2,566 -6 10,018 3 By product: Finance leasing (£m) 240 -10 776 -2 3,153 -11 Operating leasing (£m) 469 -4 1,404 -11 5,867 -4 Lease/Hire purchase (£m) 1,570 12 4,898 9 18,023 7 Other finance (£m) 255 -17 797 -1 3,294 -6 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