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Asset finance new business growth in the UK was up by 6% in September 2023
On 14th November 2023, the Finance & Leasing Association (FLA) released new figures that show total asset finance new business (primarily leasing and hire purchase) grew by 6% in September 2023. This is in comparison to the same month in 2022. In the first 9 months of 2023, new business was up by 14% compared to the same period in 2023.
The commercial vehicle finance and business new car finance reported new business was up in September by 12% and 49% respectively, compared with the same month in 2022. The plant and machinery finance industry reported a fall in new business in 22% over the same time period.
Director of Research and Chief Economist of the FLA commented:
“The asset finance industry continued to report growth in September albeit at its slowest rate since July 2022. The vehicle finance sectors reported further robust growth whilst machinery and equipment finance sectors recorded lower levels of new business. September saw new lending to SMEs fall by 3% compared with the same month in the previous year. This is the first contraction since April 2022. By contrast, new business to larger businesses increased by 24%.”
She went on to add
“The economic outlook has weakened following a sustained period of high inflation and higher interest rates. Nevertheless, FLA asset finance providers remain optimistic about growth opportunities as shown by the FLA’s Q3 2023 Industry Outlook Survey. Respondents identified a range of opportunities from development of new products, diversification into new sectors and through supporting businesses to transition to net zero.”
“The FLA has called on the Government to recognise the vital role the asset finance industry plays in supporting business investments by extending the full expensing regime to including leasing and rental in the Autumn Statement.”
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