Asset finance new business up by 5% in May
Asset finance new business growth in the UK was up by 5% in May 2022
The Finance and Leasing Association (FLA) released new figures earlier this week showing that the total asset finance new business grew in May 2022. This was up by 5pc in comparison with the same month in 2021. The increase seen was primarily within leasing and hire purchase. In the five months leading up to May 2022, new business was 2pc higher than that recorded in the same period in 2021.
Plant and machinery finance and business equipment finance sectors also saw growth of 15% and 33% in new businesses within May 2022. In addition to this, the commercial vehicle finance sector reported an increase in new business of 6% over the same period.
Tom Brown, PMD Business Finance Director, commented:
“Asset Finance and the alternative finance market as a whole is crucial to the SME sector. Accessed through the broker community, it allows SMEs to choose the most appropriate funding source.
Larger brokers like PMD Business Finance can provide clients with ‘whole market’ choice. PMD currently has over 150 lenders on its panel. Advantages of this include fast decisions, no over-exposure issues, and of course competitive pricing”
The FLA also reported that consumer car finance new business volumes dropped by 4pc in May 2022. This was in comparison with the same month in 2021. Over the same period, the corresponding value of new business grew by 6pc. In the five months before May 2022, new business volumes were 10pc higher than they were in the same period in 2021.
The consumer new car finance market saw a fall in new business of 7pc by value and 11pc by volume in May 2022. However, the consumer used car finance market reported new business up 17pc by value, but 1pc lower by volume in May 2022. Both consumer new and used car finance figures were compared with those recorded in the same month in 2021.
Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, commented:
“Pressures on household incomes from higher inflation, interest rates and taxes are expected to subdue consumer spending in the coming months. Growth in the value of consumer car finance new business is expected to be relatively modest at 4pct in Q3 2022 and 5pct in Q4 2022 compared with the same quarter in 2021.”