Equipment finance was up in 8% compared with August 2021
Total asset finance new business (primarily leasing and hire purchase) grew in August 2022 by 10% compared with the same month in 2021. In the first eight months of 2022, new business was 3% higher than in the same period in 2021, according to new figures by the Finance & Leasing Association (FLA).
The business equipment finance and plant and machinery finance sectors reported new business up in August 2022 by 8% and 12% respectively, compared with the same month in 2021. Over the same period, commercial vehicle finance new business increased by 6%.
Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “August saw the asset finance market report its strongest growth in new business since March of this year, driven by growth across several asset sectors. Demand for asset finance from SMEs remained buoyant as new lending to these businesses increased by 20% compared with August 2021.
“We welcome the Government’s recent announcement focusing on growth through increased business investment. With as much as 40% of UK investment in machinery and equipment funded by the asset finance industry, we urge the Government to ensure that measures to promote investment such as the capital allowances regime create a level playing field and do not exclude leasing.”