Finance & Leasing Association12 January 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 November 2022 by 12% compared with the same month in 2021. In the eleven months to November 2022, new business was 5% higher than in the same period in 2021.
The commercial vehicle finance and business car finance sectors reported new business up in November by 10% and 35% respectively, compared with the same month in 2021. Business equipment finance new business grew by 13% over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“November saw the asset finance market report its seventh consecutive month of growth as the market continues to recover to more normal pre-covid levels of new business. New lending to SMEs increased by 11% in November and the industry is on track to report a record level of asset finance new business to SMEs in 2022 as a whole.
“Our latest figures show that the asset finance market is playing a vital role in supporting businesses of all sizes to invest in new equipment that improves efficiency as they face a difficult year of uncertainty about demand and a squeeze on business margins from higher costs and interest rates.”
| Nov 2022 |
% change on prev. year |
3 months to Nov 2022 |
% change on prev. year |
12 months to Nov 2022 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
2,803 |
12 |
8,789 |
13 |
32,842 |
5 |
| Total excluding high value (£m) |
2,703 |
15 |
8,433 |
16 |
30,728 |
5 |
|
|
|
|
|
|
|
|
| Data Extracts:
By asset: |
|
|
|
|
|
|
| Plant and machinery finance (£m) |
590 |
-4 |
1,936 |
8 |
7,721 |
7 |
| Commercial vehicle finance (£m) |
810 |
10 |
2,338 |
9 |
8,724 |
4 |
| IT equipment finance (£m) |
98 |
33 |
370 |
6 |
1,525 |
-17 |
| Business equipment finance (£m) |
156 |
13 |
496 |
2 |
1,979 |
7 |
| Car finance (£m) |
884 |
35 |
2,696 |
25 |
9,226 |
9 |
| Aircraft, ships and rolling stock finance (£m) |
30 |
205 |
71 |
47 |
333 |
-4 |
|
By channel: |
|
|
|
|
|
|
| Direct finance (£m) |
1,192 |
25 |
3,741 |
23 |
13,255 |
4 |
| Broker-introduced finance (£m) |
623 |
14 |
1,987 |
18 |
7,248 |
10 |
| Sales finance (£m) |
888 |
4 |
2,705 |
5 |
10,224 |
2 |
|
By product: |
|
|
|
|
|
|
| Finance leasing (£m) |
276 |
18 |
902 |
16 |
3,317 |
3 |
| Operating leasing (£m) |
626 |
30 |
1,848 |
16 |
6,137 |
-2 |
| Lease/Hire purchase (£m) |
1,563 |
5 |
4,873 |
12 |
18,688 |
8 |
| Other finance (£m) |
259 |
33 |
885 |
22 |
3,459 |
6 |
Note to editors:
- In 2021, FLA members provided £132 billion of new finance to UK businesses and households. £31 billion of finance was provided to businesses and the public sector. FLA members financed more than a third of UK investment in machinery, equipment and purchased software in the UK in 2021.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
