Asset finance new business rises 14% in April

New business in the UK asset finance market grew by 14% in April 2026 compared with the same month last year, according to the latest figures from the Finance & Leasing Association (FLA).

The data showed a strong start to the second quarter, with total new asset finance business – primarily leasing and hire purchase – increasing despite continued economic uncertainty and cost pressures facing businesses.

Over the first four months of 2026, asset finance new business was 6% higher than in the corresponding period of 2025.

The strongest performance came from the plant and machinery finance sector, where new business increased by 36% in April compared with the same month last year. Business new car finance also performed strongly, rising by 18%, while commercial vehicle finance recorded growth of 5%.

The figures also highlighted continued demand from smaller businesses. New asset finance lending to SMEs increased by 8% year-on-year in April, while lending to larger businesses rose by 26%.

“The asset finance market made a strong start to the second quarter, underlining the sector’s resilience as businesses continue to invest despite a more uncertain economic backdrop.

“In the near term, however, cost pressures and geopolitical uncertainty are still weighing on confidence, with higher energy prices and interest rates testing affordability. The recent agreement between the US and Iran to ease tensions offers some hope that these pressures may begin to moderate, improving the economic outlook over the medium term.

“While risks remain, there are also clear opportunities. Demand for finance continues to shift towards essential and productivity-enhancing investment, while market developments, technological change and the transition to net zero are creating new areas for growth.”

With inflation stabilising and businesses awaiting further clarity on the interest rate outlook, the asset finance sector appears well positioned to support investment across the UK economy through the remainder of 2026.

	Apr  2026	% change on prev. year	3 months to Apr 2026	% change on prev. year	12 months to Apr 2026	% change on prev. year
Total FLA asset finance (£m)	3,736	14	11,209	9	41,057	4
Total excluding high value (£m)	3,502	10	10,714	8	39,056	4
Data extracts: By asset:
Plant and machinery finance (£m)	900	36	2,587	25	8,359	10
Commercial vehicle finance (£m)	924	5	3,012	7	10,838	-2
IT equipment finance (£m)	93	-9	333	5	1,279	-2
Business equipment finance (£m)	141	-2	426	-10	1,768	1
Car finance (£m)	1,272	19	3,781	10	13,673	4
Aircraft, ships and rolling stock finance (£m)	21	-7	102	5	428	43
By channel:
Direct finance (£m)	1,632	18	4,772	10	17,852	6
Broker-introduced finance (£m)	738	-4	2,372	7	8,906	5
Sales finance (£m)	1,132	11	3,571	6	12,298	0
By product:
Finance leasing (£m)	337	35	839	21	3,154	2
Operating leasing (£m)	821	6	2,572	4	10,117	0
Lease/Hire purchase (£m)	1,993	14	6,106	9	21,104	2
Other finance (£m)	525	32	1,506	26	5,415	29