In September 2021, total asset finance new business (primarily leasing and hire purchase) grew by 6% compared with the same month last year, new research from the Finance & Leasing Association has revealed.
In the nine months leading up to September 2021, the data suggested new business was 20% higher than in the same period in 2020.
New business in the plant and machinery financial sector grew by 31%, while the business equipment finance sector saw an increase of 21% compared to the same month in 2020. However, new business for IT equipment finance fell by 24% over the same period.
Geraldine Kilkelly, director of research and chief economist at the FLA, said:
“The asset finance market continued to grow in September, supporting businesses of all sizes recover from the pandemic – new lending to SMEs alone grew by 13% compared with September 2020.
“Our latest research suggests that the industry has maintained its optimism about the opportunities for growth despite the risks to the economic recovery from supply chain disruption, higher inflation and further waves of Covid-19. The FLA’s Q4 2021 industry outlook survey shows that 90% of asset finance providers expected new business growth over the next 12 months.
“The industry has a key role to play in delivering net-zero targets by helping businesses invest in assets that use greener and more efficient technologies. We have recommended that the Government create a Green Finance Wholesale Guarantee scheme that would significantly scale-up the level of green lending over the next few years.”
Our team at Cornerstone Commercial Finance can secure funding for the equipment you need for your business, without the need to dip into your working capital.
Depending on the needs of your business, we may be able to help. To discuss your requirements with a member of our team, call 02921 660 550 or get in touch.