Total asset finance new business (primarily leasing and hire purchase) grew in August 2023 by 19% compared with the same month in 2022.

In the first eight months of 2023, new business was 15% higher than in the same period in 2022, according to figures released by the Finance & Leasing Association (FLA).

The business new car finance and commercial vehicle finance sectors reported new business up in August by 94% and 12% respectively, compared with the same month in 2022.

By contrast, the plant and machinery finance sector reported a fall in new business of 9% over the same period.

Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “Further double-digit growth in asset finance new business in August was driven by strong performances by the vehicle finance sectors.

“The rebound in new lending provided to large businesses continued, increasing by 53% compared with August 2022, while new lending to SMEs grew by 4%.

“FLA asset finance providers remain cautiously optimistic about future growth prospects with almost three-quarters of respondents to the Q3 2023 Industry Outlook Survey expecting some increase in new business over the next twelve months.”

Paragon’s Phillipou is the new FLA Chair as Rebecca McNeil steps down