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Market Data Sponsored by Market Data Asset finance new business grew by 20% in February 2023 Published: 5th April 2023 Share New figures released by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in February 2023 by 20% compared with the same month in 2022. In the first two months of 2023, new business was 13% higher than in the same period in 2022. The business new car and commercial vehicle finance sectors reported new business up in February by 46% and 24% respectively, compared with the same month in 2022. The plant and machinery finance sector also reported new business growth of 18% 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 tenth consecutive month of new business growth in February which was more broad-based than in recent months, albeit compared with a relatively subdued February 2022. Asset finance new business provided to SMEs and larger businesses increased in February by 16% and 28% respectively. “The latest figures clearly demonstrate that the industry is continuing to support businesses to invest and grow in a challenging economic environment. Among SMEs, the success rate is high when applying for asset finance, with 95% offered a facility. Furthermore, 93% of SMEs applying for asset finance were satisfied with the outcome of the process compared with only 54% of those applying for a bank loan.” Feb 2023 % change on prev yr 3 mths to Feb 2023 % change on prev yr 12 mths to Feb 2023 % change on prev yr Total FLA asset finance (£m) 2,609 20 8,458 15 34,457 8 Total excluding high value (£m) 2,430 17 8,032 18 32,513 9 Data Extracts: By asset: Plant and machinery finance (£m) 654 18 1,836 7 7,896 7 Commercial vehicle finance (£m) 734 24 2,153 13 8,997 7 IT equipment finance (£m) 99 19 363 16 1,588 3 Business equipment finance (£m) 144 -5 442 -10 1,946 1 Car finance (£m) 715 26 2,713 38 10,059 16 Aircraft, ships and rolling stock finance (£m) 11 -59 78 -38 294 -25 By channel: Direct finance (£m) 1,099 26 3,826 32 14,450 13 Broker-introduced finance (£m) 604 16 1.831 16 7,664 12 Sales finance (£m) 727 6 2,374 2 10,399 0 By product: Finance leasing (£m) 242 10 863 16 3,464 9 Operating leasing (£m) 556 45 1,956 42 6,714 9 Lease/Hire purchase (£m) 1,435 14 4,432 11 19,350 10 Other finance (£m) 287 15 950 -4 3,709 1 Lisa Laverick Editor - Asset Finance Connect Sign up to our newsletter Featured Stories Market DataUK economy sees 0.2% growth in August Market DataUK business activity continues to rise in September Market DataConsumer car finance new business fell by 2% in August