Finance & Leasing Association14 December 2022
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 2022 by 17% compared with the same month in 2021. In the ten months to October 2022, new business was 5% higher than in the same period in 2021.
The plant and machinery finance sector reported new business up in October by 23% compared with the same month in 2021. Over the same period, business equipment finance and commercial vehicle finance new business grew by 13% and 11% respectively.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“In October, the asset finance market reported its strongest rate of new business growth since June 2021, with new lending to SMEs increasing at a double-digit rate. We expect asset finance new business to reach £32.5 billion in 2022 as a whole, 4% higher than in 2021, but 9% lower than in 2019 which largely reflects the shortages of asset to finance.
“Despite the challenging outlook for demand over the next year, businesses are committed to investing in energy-efficient equipment and machinery. Demand for finance to support business-critical investment combined with the gradual easing of supply shortages should support asset finance new business volumes over the next twelve months.”
| Oct 2022 |
% change on prev. year |
3 months to Oct 2022 |
% change on prev. year |
12 months to Oct 2022 |
% change on prev. year |
|
| Total FLA asset finance (£m) |
2,887 |
17 |
8,415 |
12 |
32,545 |
4 |
| Total excluding high value (£m) |
2,778 |
21 |
8,054 |
14 |
30,376 |
4 |
|
|
|
|
|
|
|
|
| Data Extracts:
By asset: |
|
|
|
|
|
|
| Plant and machinery finance (£m) |
658 |
23 |
1,958 |
14 |
7,743 |
10 |
| Commercial vehicle finance (£m) |
776 |
11 |
2,191 |
8 |
8,651 |
3 |
| IT equipment finance (£m) |
76 |
-29 |
389 |
-6 |
1,501 |
-22 |
| Business equipment finance (£m) |
157 |
13 |
490 |
1 |
1,961 |
5 |
| Car finance (£m) |
882 |
31 |
2,422 |
17 |
8,999 |
6 |
| Aircraft, ships and rolling stock finance (£m) |
10 |
-57 |
67 |
-13 |
312 |
-10 |
|
By channel: |
|
|
|
|
|
|
| Direct finance (£m) |
1,322 |
37 |
3,573 |
17 |
13,016 |
1 |
| Broker-introduced finance (£m) |
642 |
16 |
1,943 |
18 |
7,174 |
10 |
| Sales finance (£m) |
825 |
4 |
2,539 |
7 |
10,186 |
3 |
|
By product: |
|
|
|
|
|
|
| Finance leasing (£m) |
298 |
7 |
884 |
16 |
3,276 |
0 |
| Operating leasing (£m) |
592 |
30 |
1,656 |
8 |
5,992 |
-4 |
| Lease/Hire purchase (£m) |
1,625 |
19 |
4,732 |
14 |
18,612 |
9 |
| Other finance (£m) |
295 |
24 |
839 |
17 |
3,395 |
3 |
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.
