Commercial vehicle finance grew by 5%
Total asset finance new business (primarily leasing and hire purchase) grew in September 2022 by 9% compared with the same month in 2021, according to new figures released by the Finance & Leasing Association (FLA).
In the first nine months of 2022, new business was 3% higher than in the same period in 2021.
The IT equipment finance and plant and machinery finance sectors reported new business up in September by 17% and 7% respectively, compared with the same month in 2021.
New business for commercial vehicle finance grew by 5% over the same period.
Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “September 2022 saw the asset finance market report monthly new business in excess of £3 billion for only the third time since the onset of the pandemic. Following the mini-Budget, many asset finance customers sought to secure new business deals ahead of interest rate rises.
“The outlook for investment remains challenging as UK businesses face reduced demand and lower margins in the coming months. The FLA’s Q4 2022 Industry Outlook Survey showed mixed expectations for growth over the next year among asset finance providers, with 47% expecting some increase in new business, 13% anticipating new business to remain stable, and 40% expecting some decrease.”