New figures released 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 11 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 yr |
3 mths to Nov 22 |
% change on prev yr |
12 mths to Nov 22 |
% change on prev yr | |
---|---|---|---|---|---|---|
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 |