Asset Finance new business grew by 11% in October 2023

On 7th December 2023, the Finance & Leasing Association (FLA) released new figures showing that the total asset finance new business (primarily hire purchase and leasing) grew in October 2023 by 11% when compared with the same period in 2022. In the ten months to October 2023, new business was 14% higher than in the same period in 2022.

Commercial vehicle finance and new business car finance sectors reported new business up in October by 8% and 53% respectively, compared with the same month in 2022. The plant and machinery finance sector reported a 17%$ fall in new business over the same time period.

Geraldine Kilkelly, Director of Research and Chief Economist at the FLA said;

“The asset finance market returned to double-digit new business growth in October with further strong performances from the vehicle finance sectors. New asset finance lending to SMEs grew by 6% compared with the same month in 2022, while to larger businesses it increased by 15%.

“2023 is set to be a record year for the asset finance industry as new business is expected to reach more than £38 billion. The industry directly supports the real economy by providing finance to businesses of all sizes which funds as much as 40% of UK investment in machinery, equipment and vehicles.

“Asset finance is playing a vital role in funding the investment needed to raise productivity while helping the UK transition to net zero which will ultimately raise economic growth and household living standards.”

 

For more information, get in touch with one of our PMD Business Finance experts today on 0161 633 2548. To learn more about our full service offering, check out our website. You can also keep up to date on our latest events and opportunities via our LinkedIn.

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