Figures released by the Financial Leasing Association show that total asset finance new business grew by 2% in October compared to the same month last year, and has risen by 6% in the first ten months of 2019.
The IT equipment finance sector reported a 43% increase in new business compared with the same month last year.
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The business new car finance and plant and machinery finance sectors shows new business growth of 13% and 5%.
Commenting on the figures, Geraldine Kilkelly, head of research and Chief Economist at the FLA, said: “The asset finance industry is on track to report a record level of new business in 2019 of around £35bn. The industry has provided support to businesses keen to invest in new technology which will increase productivity and maintain competitiveness.”
“Moving forward with the Brexit process should reduce some of the uncertainty that has weighed on business investment since the EU membership referendum. This will provide opportunities for further growth in the asset finance market in 2020,” she added.
In September FLA figures showed asset finance new business grew by 5% in September to £2.9bn, compared with the same month in 2018.
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By GlobalDataIn Q3 as a whole, new business was 5% higher than in the same quarter in 2018, reaching £8.4bn.
New finance for plant and machinery and business cars grew in September by 15% and 4% to £623m and £712m respectively, compared with the same month in the previous year.
Over the same period new finance for commercial vehicles was steady.
By channel, sales finance grew 15% to £930m in September, while direct finance dropped 1% to £1.2bn. Broker-introduced finance increased 4% to £541m in the same period.
By product, finance leasing saw an 8% decline to £405m in September, while lease/hire purchase saw a 4% increase to £1.5bn. Operating leasing saw a 1% rise to reach £501m in the same period, while other forms of finance saw a 20% jump to £280m.
