The latest data from the Finance & Leasing Association (FLA) indicates a significant growth in the asset finance new business sector (primarily leasing and hire purchase), with a 9% increase in July 2024 compared to the same month of the previous year.
New business witnessed a 5% increase in the seven months leading up to July 2024 than July 2023.
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The commercial vehicle finance sector particularly stood out, with an 11% rise in new business in July compared to the prior year.
Similarly, the plant and machinery finance sector experienced growth, with new business rising by 14% year-on-year.
Commenting on the growth, FLA research director and chief economist Geraldine Kilkelly said: “The asset finance market made a positive start to the third quarter of 2024 with broad-based growth in the value of new business. New lending to SMEs and larger businesses increased in July by 10% and 6% respectively, compared with July 2023.
“FLA’s latest figures also showed higher levels of new business provided to business across all major industry sectors including manufacturing, services and construction.
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By GlobalData“The asset finance industry plays a key role in helping businesses of all sizes and across all sectors of the economy to invest in machinery and equipment and we therefore urge the government to include leasing in the full expensing regime at the next Budget in October.”
Last year, FLA members offered new finance of £151bn ($197.35m) to UK businesses and households.
