New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in July 2023 by 14% compared with the same month in 2022. In the seven months to July 2023, new business was also 14% higher than in the same period in 2022.
The business new car finance sector reported new business up in July by 59% compared with the same month in 2022. The business equipment finance and commercial vehicle finance sectors reported new business growth of 15% and 12% respectively, over the same period.
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Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The asset finance market has reported double-digit new business growth in eleven of the last twelve months. Growth in July was more broad-based with higher levels of new business in the equipment finance as well as the vehicle finance sectors.
“In the twelve months to July 2023, asset finance new business provided to SMEs reached a record level of £24.4 billion. There has been increased use of leasing and hire purchase by larger SMEs with 10 or more employees. The success rate of SMEs who applied for asset finance since the beginning of 2022 was high, with 93% of those businesses offered and taking what they applied for.”
By Lisa Laverick
Source: Asset Finance International