FLA report Asset Finance growth rise in 2023
Asset Finance Lending increases by 11% in 12 months leading up to October 2023
New figures released by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in October 2023 by 11% compared with the same month in 2022. In the ten months to October 2023, new business was 14% higher than in the same period in 2022.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The asset finance market returned to double-digit new business growth in October with further strong performances from the vehicle finance sectors. New asset finance lending to SMEs grew by 6% compared with the same month in 2022, while to larger businesses it increased by 15%.
“2023 is set to be a record year for the asset finance industry as new business is expected to reach more than £38 billion. The industry directly supports the real economy by providing finance to businesses of all sizes which funds as much as 40% of UK investment in machinery, equipment and vehicles. Asset finance is playing a vital role in funding the investment needed to raise productivity while helping the UK transition to net zero which will ultimately raise economic growth and household living standards.”
Comment by MD Joe Barbera:
Traditional banks are still not supporting businesses as they once were.
Asset Finance continues to be a very valuable funding resource to all businesses in nearly every sector. Our extensive panel of lender continue to offer many products including Hire Purchase, Finance Lease and Re-Finance to help SME’s achieve their ambitious growth plans.
We are very proud to continue to service the business community and we always aim to become the long term liquidity partner for very single client we assist.
If you would like to discuss how Liquid Corporate Finance can help fund your business ambitions and growth, contact us via the details below:
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