Business volumes in UK leasing and hire purchase was up 3% year-on-year in July, as was second quarter business, according to the latest Finance & Leasing Association (FLA) data.
The July figure of £1.9bn (2.3bn) for leasing and hire purchase excluding high value assets marked a 6% rise across the month. Meanwhile, business for the second quarter of 2013 rose 3% year-on-year to £5.8bn, although figures for the year to July showed a 1% decrease to £21.5bn.
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Business equipment finance and commercial vehicle finance performed well for the month, up 11% to £151m and 16% to £393m respectively, and car finance and plant and machinery finance also grew 5% to £628m and 3% to £399m respectively. However IT equipment finance shrank 8% to £96m.
Julian Rose, head of asset finance at the FLA, said: "This further month of growth in the use of asset finance is in line with several recent surveys including the SME Finance Monitor, which reported a spike in the use of asset finance by small businesses.
"The Department for Business’s SME Business Barometer found that, for the first time for nearly two years, the main reason for SMEs seeking external finance was to acquire new equipment."
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