V4B Business Finance is excited to share the latest findings from the Finance & Leasing Association (“FLA”), which unveil encouraging trends in the asset finance sector. February 2024 witnessed a notable uptick of 10% in total new business compared to the same month in 2023. Furthermore, the cumulative new business for the first two months of 2024 surpassed the corresponding period in 2023 by an impressive 9%.
Specifically, there was a remarkable 40% surge in business new car finance and a commendable 7% increase in commercial vehicle finance in February 2024 compared to the prior year. However, there was a downturn in new business for plant and machinery finance by 13% and business equipment finance by 5% during the same period.
Geraldine Kilkelly, the FLA’s Director of Research and Chief Economist, sheds light on market dynamics, noting that the surge in asset finance has been predominantly fueled by the new car and commercial vehicle sectors since April of the preceding year. Conversely, weaker demand has been observed in the machinery and business equipment finance sectors. Notably, finance for construction equipment experienced a notable decline of 16% in the twelve months leading up to February 2024.
Emphasising the pivotal role of asset finance in supporting SMEs, Kilkelly underscores that lending to SMEs by FLA asset finance providers grew by 4% in February, reaching £23.6 billion in the twelve months ending February 2024. This is in line with insights from the latest SME Finance Monitor, which indicates widespread utilisation of asset finance among SMEs across different employee brackets.
Looking ahead, the outlook for the asset finance market remains positive, with continued growth anticipated in the vehicle finance sectors. However, broader investment intentions are tempered by ongoing uncertainty surrounding demand and pressure on net margins. V4B Business Finance is committed to assisting businesses in navigating these challenges and providing the necessary financing solutions for sustained growth and success.
Source : https://www.leasingworld.co.uk/freepages/news-detail.php?ID=3405
