Asset finance new business grew by 2% in May 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 2% in May 2026 compared with the same month in 2025. In the first five months of 2026, new business was 5% higher than in the same period in 2025.
The business new car finance and commercial vehicle finance sectors each reported new business up in May by 7% compared with the same month in 2025. The plant and machinery finance sector reported new business growth of 9% over the same period.
New asset finance lending to SMEs grew in May by 7% compared with the same month in 2025, while new lending to larger businesses fell by 6%.
Commenting on the figures, Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The asset finance market continued to grow in May, with annual new business reaching a record £41.1 billion. While growth was more modest than in recent months, new business remained robust in core sectors including plant and machinery and commercial vehicle finance. SME lending also recorded a ninth consecutive month of growth, underlining the sector’s vital role in helping businesses invest, grow and improve productivity.”
“The economic environment remains challenging. Although UK GDP returned to growth in May, recent surveys suggest business activity and confidence has softened. We expect the asset finance market to remain resilient, supported by firms’ ongoing investment needs, but growth is likely to remain measured while businesses contend with weaker demand, elevated borrowing costs and continued geopolitical uncertainty.”
| May 2026 | % change on prev. year | 3 months to May 2026 | % change on prev. year | 12 months to May 2026 | % change on prev. year | |
| Total FLA asset finance (£m) | 3,198 | 2 | 11,395 | 8 | 41,106 | 5 |
| Total excluding high value (£m) | 3,084 | 3 | 10,964 | 8 | 39,133 | 5 |
| Data Extracts:
By asset: | ||||||
| Plant and machinery finance (£m) | 702 | 9 | 2,535 | 20 | 8,419 | 11 |
| Commercial vehicle finance (£m) | 908 | 7 | 3,074 | 7 | 10,894 | -1 |
| IT equipment finance (£m) | 84 | -1 | 298 | -1 | 1,278 | 2 |
| Business equipment finance (£m) | 132 | -3 | 431 | -12 | 1,764 | 1 |
| Car finance (£m) | 1,100 | 9 | 4,030 | 13 | 13,761 | 6 |
| Aircraft, ships and rolling stock finance (£m) | 21 | -79 | 84 | -41 | 348 | -10 |
| By channel: | ||||||
| Direct finance (£m) | 1,405 | 1 | 4,944 | 10 | 17,865 | 6 |
| Broker-introduced finance (£m) | 699 | 2 | 2,350 | 4 | 8,921 | 6 |
| Sales finance (£m) | 979 | 5 | 3,670 | 7 | 12,347 | 1 |
| By product: | ||||||
| Finance leasing (£m) | 228 | 3 | 854 | 18 | 3,161 | 4 |
| Operating leasing (£m) | 739 | 3 | 2,599 | 4 | 10,139 | 2 |
| Lease/Hire purchase (£m) | 1,765 | 3 | 6,356 | 10 | 21,162 | 3 |
| Other finance (£m) | 413 | -3 | 1,415 | 9 | 5,401 | 25 |