The Finance & Leasing Association (FLA) has reported that total asset finance new business (primarily leasing and hire purchase) fell by 11% in September 2020 compared with the same month in 2019.
In the nine months to September 2020, new business was 27% lower than in the same period in 2019.
The car finance sector reported growth in new business of 3% in September 2020 compared with the same month in 2019. Over the same period, the commercial vehicle finance and business equipment sectors reported falls in new business of 2% and 4% respectively.
Geraldine Kilkelly, head of research and chief economist at the FLA, said: “The asset finance market has gradually returned to more normal levels of new business, with the easing of the rate of contraction continuing in September. The vehicle finance sectors fared better in September following the release of a new registration plate.
“Businesses are now facing a prolonged period of uncertainty with the introduction of new national lockdowns across the UK. To ensure that the asset finance industry can continue to support businesses of all sizes through this difficult period we urge the government and Bank of England to allow lenders, including non-banks, direct access to funding.”