Asset finance new business grew by 13% during 2014 to £25.4 billion, the strongest annual rate of growth since the onset of the financial crisis, according to the Finance & Leasing Association (FLA).

Plant and machinery finance grew by 48% in December, IT equipment finance by 10% and business equipment finance by 6%. In 2014 as a whole, plant and machinery finance was up by 21%, business new car finance by 17%, business equipment finance by 13% and IT equipment finance by 5%.

Geraldine Kilkelly, FLA’s head of research and chief economist, said: “The figures show a strong recovery in the asset finance market in 2014. Businesses were keen to use leasing and hire purchase to invest in a wide range of assets, with particularly strong growth in new finance for production plant, agricultural equipment and construction equipment.

The core market of deals of up to £20 million wrote new business of £24.6 billion in 2014, and is on target to surpass its pre-crisis peak in 2015.”