Latest figures from the Finance & Leasing Association (“FLA”) show the growth in total asset finance new business (primarily leasing and hire purchase) grew by 80% in April 2021 compared with April 2020.
In the first four months of 2021, new business was 15% higher compared to the same period in 2020.
Significant increase in new business year-on-year came from sectors such as plant and machinery and business equipment finance, which reported increases of 58% and 43% respectively, over the same period. The commercial vehicle finance sector reported the greatest increase in new business, up by 140% from April 2020 to April 2021.
The period between February-April 2021 combined to £8377 million in new business finance, a 26% increase on the same period in 2020.
Mark Johnson, Managing Director of Johnson Reed, commented, “We can see the shift in the alternative finance market as businesses are turning to this sector for support, rather than their banks, which was previously their first choice. These business owners need options and somewhere to turn to in order to start, grow or expand their company.”