Asset finance new business grew by 11% in September 2025
New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) in September 2025 grew by 11% compared with the same month in 2024. In the nine months to September 2025, new business was 2% higher than in the same period in 2024.
The business new car finance and plant and machinery finance sectors each reported new business up in September by 11% compared with the same month in 2024. By contrast, the commercial vehicle finance sector reported a fall in new business of 2% over the same period.
New asset finance lending to SMEs and larger businesses grew in September by 14% and 9% respectively, compared with the same month in 2024.
Commenting on the figures, Geraldine Kilkelly, director of research and chief economist at the FLA, said:”The asset finance market reported a strong end to the third quarter of 2025 as monthly new business reached its second highest total so far this year. It was particularly encouraging to see broad-based growth across asset sectors.
“The industry supported businesses across all sectors of the economy in September, with new finance provide to firms in the agricultural, manufacturing and services sectors growing at double-digit rates.
“The asset finance market has a diverse range of providers – both bank and non-bank – who are crucial to achieving higher levels of business investment. As we approach the Autumn Budget, we urge the government to recognize the importance of this market to the growth agenda by bringing leasing into the full expensing regime, and creating a new, targeted green tax allowance.”
| Sep 2025 | % change on prev. year | 3 months to Sep 2025 | % change on prev. year | 12 months to Sep 2025 | % change on prev. year | |
| Total FLA asset finance (£m) | 3,883 | 11 | 10,075 | 4 | 40,324 | 2 |
| Total excluding high value (£m) | 3,764 | 12 | 9,676 | 5 | 38,621 | 3 |
| Data Extracts:
By asset (excluding high value): | ||||||
| Plant and machinery finance (£m) | 680 | 11 | 1,955 | 4 | 7,603 | 1 |
| Commercial vehicle finance (£m) | 1,002 | -2 | 2,563 | -6 | 10,868 | 1 |
| IT equipment finance (£m) | 125 | 18 | 335 | 11 | 1,227 | 1 |
| Business equipment finance (£m) | 169 | 22 | 467 | 5 | 1,777 | 4 |
| Car finance (£m) | 1,358 | 13 | 3,385 | 8 | 13,691 | 1 |
| By channel: | ||||||
| Direct finance (£m) | 1,743 | 16 | 4,333 | 6 | 17,766 | 4 |
| Broker-introduced finance (£m) | 854 | 14 | 2,321 | 6 | 8,553 | 0 |
| Sales finance (£m) | 1,167 | 6 | 3,022 | 1 | 12,301 | 3 |
| By product: | ||||||
| Finance leasing (£m) | 277 | -5 | 786 | -3 | 2,941 | -11 |
| Operating leasing (£m) | 981 | 16 | 2,569 | 6 | 10,587 | 6 |
| Lease/Hire purchase (£m) | 1,976 | 8 | 5,053 | 1 | 20,728 | 1 |
| Other finance (£m) | 530 | 30 | 1,293 | 16 | 4,679 | 10 |