Asset finance new business grew by 1% in 2025
New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew by 3% in December 2025 compared with the same month in 2024. In 2025 as a whole, new business was 1% higher than in 2024.
The business equipment finance and plant and machinery finance sectors reported growth in new business in December of 2% and 21% respectively, compared with the same month in 2024. The commercial vehicle finance sector reported a 3% fall in new business over the same period.
New asset finance lending to SMEs grew by 11% in December compared with the same month in 2024, and by 4% in 2025 overall. By contrast, new business to larger businesses fell by 11% in December but remained steady in 2025 as a whole.
New asset finance lending to the services and construction sectors both grew in 2025 by 1% compared with 2024, while new lending to the manufacturing sector was 5% higher over the same period.
Commenting on the figures, Geraldine Kilkelly, director of Research and Chief Economist at the FLA, said:
“New asset finance business exceeded £40bn in 2025, marking a fifth consecutive year of growth. Despite a softer second quarter, the 5% expansion recorded in both the third and fourth quarters points to market resilience during a period of heightened uncertainty in the run up to the Autumn Budget.
“The asset finance market provided a record level of new lending to SMEs of more than £24bn in 2025. By enabling small businesses to invest in essential equipment, machinery and vehicles while preserving cash flow, the industry is supporting short‑term liquidity and helping to strengthen long‑term productivity across the economy.”
| Dec 2025 | % change on prev. year | 3 months to Dec 2025 | % change on prev. year | 12 months to Dec 2025 | % change on prev. year | |
| Total FLA asset finance (£m) | 3,536 | 3 | 10,544 | 5 | 40,329 | 1 |
| Total excluding high value (£m) | 3,201 | 3 | 9,763 | 4 | 38,420 | 2 |
| Data Extracts:
By asset: | ||||||
| Plant and machinery finance (£m) | 706 | 21 | 1,980 | 11 | 7,837 | 3 |
| Commercial vehicle finance (£m) | 862 | -3 | 2,773 | -2 | 10,769 | -3 |
| IT equipment finance (£m) | 166 | -4 | 351 | 8 | 1,298 | 4 |
| Business equipment finance (£m) | 150 | 2 | 432 | -1 | 1,797 | 6 |
| Car finance (£m) | 1,111 | 0 | 3,450 | 4 | 13,385 | 1 |
| Aircraft, ships and rolling stock finance (£m) | 11 | -67 | 73 | -9 | 405 | 20 |
| By channel: | ||||||
| Direct finance (£m) | 1,486 | 5 | 4,711 | 7 | 17,497 | 3 |
| Broker-introduced finance (£m) | 705 | 17 | 2,167 | 9 | 8,729 | 2 |
| Sales finance (£m) | 1,010 | -7 | 2,885 | -4 | 12,194 | 1 |
| By product: | ||||||
| Finance leasing (£m) | 375 | 16 | 889 | 8 | 3,011 | -6 |
| Operating leasing (£m) | 882 | -5 | 2,706 | 3 | 10,138 | 0 |
| Lease/Hire purchase (£m) | 1,628 | 3 | 5,047 | -1 | 20,699 | 0 |
| Other finance (£m) | 445 | 17 | 1,420 | 45 | 5,065 | 22 |