What to Expect from the UK Asset Finance Market in 2023

The UK asset finance market has been steadily growing since the start of the 21st century, and experts predict that this trend will continue well into 2023. In this blog post, we’ll explore what the future holds for asset finance in the UK, including projected growth rates, major players in the market, and key trends to watch out for.

Growth Predictions for 2023

According to recent reports by PwC, the UK asset finance market is expected to grow by a compound annual growth rate (CAGR) of 4.3% from 2020-2023. This would result in a total market size of around £67 billion by the end of 2023. This figure is significantly higher than what was recorded in 2018/19. This is when total assets under management (AUM) were only at £53 billion. These figures suggest that more businesses are taking advantage of asset finance and leasing options. This is to acquire necessary equipment and vehicles for their operations.

Major Players in the Market

The top five lenders in terms of AUM make up over 50% of the total UK asset finance market share as of 2019-2020. Santander leads with a 15% share, followed by Hitachi Capital (13%), Close Brothers Leasing & Asset Finance (12%), Lloyds Banking Group (9%), and Royal Bank of Scotland (7%). These lenders dominate due to their large customer base and expansive product portfolios that they offer across different sectors. Such as transport, hospitality, construction, and agriculture.

Key Trends to Watch Out For

One key trend that is expected to shape the way businesses access asset finance is digitalization. More lenders are offering online financing solutions which provide customers with greater convenience and flexibility. When it comes to obtaining financing for their assets. Additionally, technological advances have made it easier for financiers to analyse data quickly and accurately. This helps them assess creditworthiness faster than ever before. As a result, smaller businesses can now access financing more easily than ever before – something that was once reserved only for larger companies with a good credit rating.  Furthermore, increased competition means that customers can benefit from lower interest rates on their loans compared with what was available a few years ago.

The UK asset finance market is set to grow significantly over the next few years as more businesses take advantage of leasing options offered by leading lenders such as Santander or Hitachi Capital. Digitalization has opened up new possibilities for both lenders and borrowers alike; customers can now access financing quickly and easily while financiers benefit from improved analytics tools when assessing creditworthiness or setting loan rates. All these trends point towards an exciting future for asset finance in 2023!

Contact Us

Do you have growth plans for your business? If so, asset finance is a fast and effective way of catalysing your business growth. Give us a call on 01494 611 456 for asset finance options with industry leading rates! Alternatively, send an email to hello@westwon.co.uk and a member of our expert team will get back to you shortly.