New figures from the Finance & Leasing association (FLA) show that from August 2022 total asset finance new business (primarily leasing and hire purchase) grew 10% compared to August 2021. Furthermore, in the first eight months of 2022 new business was 3% higher in the same period in the previous year.
Over this same period, commercial vehicles finance new business increased by 6%. Alongside this business equipment finance and plant and machinery finance sectors reported new business up in August by 8% and 12% respectively.
Commenting on the figures, 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.”
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