Asset finance new business growth in the UK was up by 10% in August 2022
On 10th October 2022, the Finance & Leasing Association (FLA) released new figures that show that total asset finance new business (primarily leasing and hire purchase) grew by 10% in August 2022. This is compared with the same month in 2021. In the first 8 months of 2022, new business was up by 3% in comparison to the same period in 2021.
The business equipment finance and plant and machinery finance sectors reported new business up in August by 8% and 12%. This is in comparison with the same month in 2021. Over the same period, commercial vehicle finance new business increased by 6%.
Geraldine Kilkelly, director of research and chief economist at the FLA, said:
“August saw the asset finance market report its strongest growth in new business since March of this year, driven by growth across several asset sectors. Demand for asset finance from SMEs remained buoyant as new lending to these businesses increased by 20% compared with August 2021.”
She went on to add
“We welcome the Government’s recent announcement focusing on growth through increased business investment. With as much as 40% of UK investment in machinery and equipment funded by the asset finance industry, we urge the Government to ensure that measures to promote investment such as the capital allowances regime create a level playing field and do not exclude leasing.”
PMD Director Tom Brown commented
“Over the past couple of years the asset finance sector has experienced some severe supply chain issues with plant, machinery and vehicles as a result of COVID-19 and the war in Ukraine. Whilst the continued lockdowns and closing of production facilities in China continue to disrupt, there’s some positive signs that we are starting to see some light at the end of the tunnel and these recent stats from the FLA are promising. With interest rates on the rise and the government’s Super Deduction Allowance scheme due to end in 2023, now could be the perfect time for SMEs to consider accelerating their cap-ex plans and invest in new technologies.”
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