Asset finance new business grew by 5% in February 2026
New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew by 5% in February 2026 compared with the same month in 2025. In the first two months of 2026, new business was 1% lower than in the same period in 2025.
The IT equipment finance and plant and machinery finance sectors reported growth in new business in February of 19% and 25% respectively, compared with the same month in 2025. The commercial vehicle finance sector reported a 6% increase in new business over the same period.
New asset finance lending to SMEs grew by 13% in February compared with the same month in 2025, while new lending to larger businesses fell by 10% over the same period.
Commenting on the figures, Geraldine Kilkelly, director of research and chief economist at the FLA, said:“February’s data show solid performances in machinery and equipment finance, underpinned by increased levels of new business across key sectors such as manufacturing, agriculture and construction. These trends reinforce the important role asset finance continues to play in supporting business investment, particularly as firms focus on maintaining and enhancing productive capacity.
“The UK economy now faces a materially more challenging outlook, with the conflict in the Middle East likely to weigh on activity, confidence and financial conditions. However, with FLA members financing 34.3% of UK investment in machinery, equipment and vehicles in 2025, the highest share since 2019, the sector remains well placed to continue supporting investment despite significant ongoing economic uncertainty.”
| Feb 2026 | % change on prev. year | 3 months to Feb 2026 | % change on prev. year | 12 months to Feb 2026 | % change on prev. year | |
| Total FLA asset finance (£m) | 3,012 | 5 | 9,300 | 0 | 40,276 | 1 |
| Total excluding high value (£m) | 2,834 | 3 | 8,731 | 0 | 38,358 | 2 |
| Data Extracts:
By asset: | ||||||
| Plant and machinery finance (£m) | 754 | 25 | 1,971 | 17 | 7,998 | 5 |
| Commercial vehicle finance (£m) | 847 | 6 | 2,419 | -4 | 10,696 | -4 |
| IT equipment finance (£m) | 120 | 19 | 366 | -6 | 1,281 | -2 |
| Business equipment finance (£m) | 128 | 6 | 415 | 7 | 1,820 | 8 |
| Car finance (£m) | 851 | -5 | 2,896 | -3 | 13,290 | 1 |
| Aircraft, ships and rolling stock finance (£m) | 39 | -31 | 77 | -21 | 406 | 16 |
| By channel: | ||||||
| Direct finance (£m) | 1,233 | -1 | 3,980 | 0 | 17,416 | 3 |
| Broker-introduced finance (£m) | 721 | 14 | 2,050 | 12 | 8,846 | 5 |
| Sales finance (£m) | 880 | 0 | 2,702 | -6 | 12,096 | -1 |
| By product: | ||||||
| Finance leasing (£m) | 212 | 11 | 779 | 10 | 3,029 | -3 |
| Operating leasing (£m) | 712 | 1 | 2,273 | -6 | 10,037 | -1 |
| Lease/Hire purchase (£m) | 1,516 | -3 | 4,566 | -2 | 20,583 | -1 |
| Other finance (£m) | 504 | 56 | 1,351 | 27 | 5,289 | 26 |