In October 2012 asset finance grew at its fastest rate so far in 2012, the Finance & Leasing Association (FLA) has revealed.

New asset finance business in October amounted to £1.93 billion, 17% higher than in the same month a year earlier, most of it supporting individual business investments of less than £20 million.

Over the past 12 months, the asset finance industry has reported growth in new business, excluding deals of more than £20 million, of 10%, to reach £20.9 billion.

The equipment finance markets reported the strongest growth in October, with IT equipment finance up by 31% (to £100 million) and business equipment finance up by 32% (to £153 million).

New car finance and commercial vehicle finance grew in October by 13% (to £535 million) and 12% (to £421 million) respectively.

Plant and machinery finance was 11% higher in October, at £347 million.

Direct finance was £1 billion in October, up by 19% compared with the same month in the previous year.

Broker-introduced finance and sales finance grew respectively by 17% (to £334 million) and 22% (to £502 million) over the same period.

“These statistics show that FLA members are helping over 20,000 UK businesses invest each month, across all sectors of the economy and in all regions,” said Julian Rose, head of asset finance at the FLA.

“Recent Open University research shows that SMEs want more help from the government’s new Business Bank. The FLA has therefore suggested that the Business Bank should include a scheme specifically aimed at boosting investment by businesses in new equipment, with the support of the UK’s equipment finance industry.

“This would help to maintain levels of asset finance investment, which is helping to support the economic growth the UK needs.”