Asset finance new business grew by 7% in October 2025
New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) in October 2025 grew by 7% compared with the same month in 2024. In the ten months to October 2025, new business was 2% higher than in the same period in 2024.
The business new car finance and plant and machinery finance sectors reported growth in new business in October of 7% and 6% respectively, compared with the same month in 2024. The commercial vehicle finance sector reported a fall in new business of 6% over the same period.
New asset finance lending to SMEs and larger businesses each grew in October by 8% compared with the same month in 2024.
New asset finance lending to the manufacturing sector increased in October by 34% compared with the same month in 2024, while new lending to the construction and services sectors grew by 8% and 3% respectively.
Commenting on the figures, Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The asset finance market made a positive start to the final quarter of 2025, recording a second consecutive month of broad-based growth in October.
“FLA asset finance providers are on track to reach a record level of new business in 2025 of almost £41bn. The industry directly supports the real economy by providing finance to businesses of all sizes, funding a third of UK investment in machinery, equipment and vehicles annually.
“With around a third of high growth firms using asset finance, the industry is playing a key role in funding the investment needed to raise productivity and household living standards.”
| Oct 2025 | % change on prev. year | 3 months to Oct 2025 | % change on prev. year | 12 months to Oct 2025 | % change on prev. year | |
| Total FLA asset finance (£m) | 3,683 | 7 | 10,262 | 6 | 40,559 | 2 |
| Total excluding high value (£m) | 3,444 | 5 | 9,810 | 5 | 38,733 | 3 |
| Data Extracts:
By asset (excluding high value): | ||||||
| Plant and machinery finance (£m) | 669 | 6 | 1,924 | 5 | 7,638 | 1 |
| Commercial vehicle finance (£m) | 923 | -6 | 2,603 | -7 | 10,811 | 0 |
| IT equipment finance (£m) | 106 | 23 | 335 | 9 | 1,247 | 1 |
| Business equipment finance (£m) | 152 | 2 | 472 | 9 | 1,780 | 4 |
| Car finance (£m) | 1,253 | 10 | 3,471 | 9 | 13,806 | 3 |
| By channel: | ||||||
| Direct finance (£m) | 1,666 | 6 | 4,553 | 8 | 17,810 | 5 |
| Broker-introduced finance (£m) | 778 | 5 | 2,302 | 6 | 8,589 | 0 |
| Sales finance (£m) | 1,001 | 3 | 2,956 | 1 | 12,333 | 3 |
| By product: | ||||||
| Finance leasing (£m) | 272 | 11 | 788 | -1 | 2,967 | -9 |
| Operating leasing (£m) | 871 | 5 | 2,549 | 6 | 10,626 | 5 |
| Lease/Hire purchase (£m) | 1,858 | 0 | 5,175 | 1 | 20,731 | 0 |
| Other finance (£m) | 579 | 69 | 1,434 | 40 | 4, 858 | 15 |