Asset finance new business grew by 9% in May 2024

9 July 2024

New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in May 2024 by 9% compared with the same month in 2023.  In the five months to May 2024, new business was 8% higher than in the same period in 2023. 

The business new car finance and commercial vehicle finance sectors reported new business up in May by 12% and 8% respectively, compared with the same month in 2023.  Over the same period, new business in the plant and machinery finance and business equipment finance sectors fell by 2% and 11% respectively. 

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: 

“The asset finance market has grown in all but one month so far this year, with the annual total of new business in May reaching a new high of almost £40 billion.  The performance across sectors has varied in line with what was seen for much of 2023 – continued growth in vehicle finance but subdued demand for machinery and business equipment finance. 

“Demand from larger businesses has driven growth in the first five months of 2024 as new business increased by 14%, while new lending to SMEs increased by only 3%.   

“We welcome the new Government’s commitment to providing economic stability and laying the foundations to boost growth and, in particular, business investment.  The asset finance industry will play a vital in supporting businesses to invest to grow and to meet net zero targets, funding as much as 40% of UK investment in machinery, equipment and vehicles.” 

 

May

 2024

% change on prev. year

3 months to

May

2024

% change on prev. year

12 months to

May 2024

% change on prev. year

Total FLA asset finance (£m)

3,414

9

11,041

7

39,703

10

Total excluding high value (£m)

3,268

10

10,455

7

37,893

10

 

 

 

 

 

 

 

Data Extracts:

 

By asset:

 

 

 

 

 

 

Plant and machinery finance (£m)

642

-2

2,078

-8

7,406

-11

Commercial vehicle finance (£m)

867

8

2,980

14

10,399

11

IT equipment finance (£m)

142

107

358

23

1,251

-7

Business equipment finance (£m)

128

-11

431

-12

1,813

-5

Car finance (£m)

1,130

8

3,705

9

13,891

26

Aircraft, ships and rolling stock finance (£m)

15

-20

104

24

348

11

 

By channel:

 

 

 

 

 

 

Direct finance (£m)

1,406

5

4,657

7

17,394

12

Broker-introduced finance (£m)

796

12

2,325

1

8,431

3

Sales finance (£m)

1,066

16

3,473

10

12,067

11

 

By product:

 

 

 

 

 

 

Finance leasing (£m)

269

19

816

0

3,457

2

Operating leasing (£m)

908

26

2,729

17

9,984

31

Lease/Hire purchase (£m)

1,780

3

5,916

4

20,682

3

Other finance (£m)

316

-5

1,219

16

4,266

13

 

 Note to editors: 

  1. In 2023, FLA members provided £151 billion of new finance to UK businesses and households.  £39 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 2023.
  2. For media enquiries, please contact the FLA press office on 020 7420 9656.

 

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