New figures released today by the Finance & Leasing Association (FLA) show that FLA members across the asset finance, consumer finance and motor finance markets provided £76.3bn of new business in the first half of 2023, 1% higher than in the same period in 2022. Of this total:
- £19bn was provided to businesses for investment in machinery, equipment, and vehicles, including £12.5 billion to SMEs.
- £57.3bn was provided to households, including £20.4bn for new and used car purchases.
- £31.5bn was provided by non-bank lenders.
Stephen Haddrill, director general at the FLA, said: “FLA markets have proved resilient in the first half of 2023 despite tough economic conditions.
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“It is especially good news that asset finance provided to businesses increased by 18% in June compared with the previous year and 15% in Q2 2023 compared to Q2 2022. This means that in June alone over £500 million more lending was provided by FLA Members for business investment.
“This shows the underlying resilience of businesses and the strength of the asset finance market.
“But our Members could do even more through a deeper partnership with Government. For instance, we know SMEs face a challenge in transitioning to net zero.
“With a government-backed risk-sharing approach, our members will facilitate the move towards using green assets and low to zero-carbon vehicles.”
