Finance & Leasing Association7 December 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 October 2023 by 11% compared with the same month in 2022. In the ten months to October 2023, new business was 14% higher than in the same period in 2022.
The business new car finance and commercial vehicle finance sectors reported new business up in October by 53% and 8% respectively, compared with the same month in 2022. The plant and machinery finance sector reported a fall in new business of 17% over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The asset finance market returned to double-digit new business growth in October with further strong performances from the vehicle finance sectors. New asset finance lending to SMEs grew by 6% compared with the same month in 2022, while to larger businesses it increased by 15%.
“2023 is set to be a record year for the asset finance industry as new business is expected to reach more than £38 billion. The industry directly supports the real economy by providing finance to businesses of all sizes which funds as much as 40% of UK investment in machinery, equipment and vehicles. Asset finance is playing a vital role in funding the investment needed to raise productivity while helping the UK transition to net zero which will ultimately raise economic growth and household living standards.”
| Oct 2023 |
% change on prev. year |
3 months to Oct 2023 |
% change on prev. year |
12 months to Oct 2023 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
3,303 |
11 |
9,673 |
12 |
37,942 |
14 |
| Total excluding high value (£m) |
3,159 |
10 |
9,293 |
12 |
36,293 |
17 |
|
|
|
|
|
|
|
|
| Data Extracts:
By asset: |
|
|
|
|
|
|
| Plant and machinery finance (£m) |
568 |
-17 |
1,702 |
-16 |
7,660 |
-3 |
| Commercial vehicle finance (£m) |
864 |
8 |
2,493 |
11 |
9,900 |
13 |
| IT equipment finance (£m) |
73 |
-6 |
287 |
-27 |
1,249 |
-17 |
| Business equipment finance (£m) |
161 |
0 |
489 |
-2 |
1,918 |
-4 |
| Car finance (£m) |
1,229 |
38 |
3,529 |
44 |
12,821 |
41 |
| Aircraft, ships and rolling stock finance (£m) |
18 |
54 |
84 |
20 |
345 |
8 |
|
By channel: |
|
|
|
|
|
|
| Direct finance (£m) |
1,500 |
10 |
4,323 |
17 |
16,695 |
25 |
| Broker-introduced finance (£m) |
698 |
1 |
2,030 |
-2 |
8,304 |
11 |
| Sales finance (£m) |
962 |
15 |
2,941 |
15 |
11,294 |
10 |
|
By product: |
|
|
|
|
|
|
| Finance leasing (£m) |
300 |
-1 |
897 |
0 |
3,503 |
6 |
| Operating leasing (£m) |
768 |
31 |
2,360 |
43 |
8,784 |
47 |
| Lease/Hire purchase (£m) |
1,744 |
3 |
5,015 |
2 |
20,397 |
7 |
| Other finance (£m) |
353 |
11 |
1,044 |
14 |
3,968 |
8 |
Note to editors:
- In 2022, FLA members provided £151 billion of new finance to UK businesses and households. £34 billion of finance was provided to businesses and the public sector. FLA members financed almost a third of UK investment in machinery, equipment and purchased software in the UK in 2022.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
