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According to the Finance & Leasing Association, in the 11 months to November 2021, new business of mainly hire purchase and leasing, was 16% higher than the same time in 2020. Plant and machinery saw the biggest rise at 35% in November alone.
Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, commented:
“The asset finance market returned to growth in November with new finance provided to SMEs up by 21% compared with the same month in 2020. New business in 2021 as a whole is likely to be £31 billion, 13% lower than the pre-pandemic peak as disruption caused by equipment shortages and the broader economic impacts of new waves of Covid-19 slow the rate of recovery.
“The industry has remained resilient during the pandemic and continues to support businesses of all sizes to invest in a more sustainable future. Our latest research suggests that FLA members financed almost 40% of UK investment in machinery, equipment and purchased software in Q3 2021, the highest rate since Q2 2019.
“We continue to urge the Government to extend the super-deduction allowance for expenditure on qualifying plant and machinery to include leasing so the industry can support more businesses to recover and grow.”
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