Finance & Leasing Association5 April 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 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. year |
3 months to Feb 2023 |
% change on prev. year |
12 months to Feb 2023 |
% change on prev. year |
|
| 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 |
Note to editors:
- In 2022, FLA members provided £148 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.
- BVA BDRC SME Finance Monitor Q4 2022 – external finance application success rates.
- For media enquiries, please contact the FLA press office on 020 7420 9656.
