Asset Finance New Business Grew by 12% in November 2023

On 16th January, the Finance & Leasing Association (FLA) released new figures showing that the total asset finance new business (primarily leasing and hire purchase) grew by 12% in November 2023, when compared with the same period in 2022. In the eleven months leading to November 2023, new business was 13% higher than in the same period in 2022.

Finance for the commercial vehicles sector and new business cars was reportedly up in November by 1% and 37% respectively, compared with the same period in 2022. The plant and machinery finance sector reported an 8% fall in new business over the same time period.

New asset finance lending to SMEs also grew by 5% when compared with figures from November 2022, whilst lending to larger businesses grew by 24%.

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

“The performance in November means the market is on track to report a record annual level of new business in 2023. The FLA’s Q4 2023 Industry Outlook Survey shows that asset finance respondents remain cautiously optimistic about growth prospects in 2024, with 77% expecting some increase in new business over the next twelve months.”

 

Further comments from Geraldine Kilkelly suggested that the industry will play a pivotal role in supporting the business investment needed to drive forward the transition to net zero and improve the UK’s productivity. The FLA are urging the Government to extend the full expensing regime to include leasing in the upcoming Spring Budget, due to be announced in March 2024.

For more information on our asset finance solutions or to find out more about full expensing, get in touch with one of our PMD Business Finance experts today on 0161 633 2548. Keep up to date on our latest events and opportunities via our LinkedIn.

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