Asset finance new business rises 15% in June

UK asset finance new business grew by 15% in June 2026 compared with the same month last year, according to the latest figures from the Finance & Leasing Association (FLA).

FLA members reported £3.8 billion of new business during the month, while new business in the first half of 2026 was 7% higher than in the same period in 2025. Over the 12 months to June, total new business reached £41.6 billion, an increase of 6%.

Growth in June was recorded across several major asset categories. Commercial vehicle finance increased by 26% year-on-year to £1.15 billion, while plant and machinery finance rose by 17% to £801 million.

New car finance grew by 18% to £1.32 billion and IT equipment finance increased by 21% to £112 million. In contrast, business equipment finance fell by 15%, while aircraft, ships and rolling stock finance declined by 6%.

The figures also showed differing rates of growth across finance channels. Direct finance increased by 28% in June, while sales finance grew by 8% and broker-introduced finance by 2%.

Lease and hire purchase recorded new business growth of 21%, compared with increases of 6% for finance leasing and 3% for operating leasing.

New lending to SMEs increased by 11% compared with June 2025, while lending to larger businesses rose by 24%.

Across the wider economy, asset finance provided to businesses in the services sector grew by 21%, while lending to both manufacturing and construction businesses increased by 7%.

“June’s results are encouraging because they point to continued business investment across the economy, mirroring the broader economic picture in Q2 2026, when business investment grew by 1.7% and the services sector, the main driver of GDP growth, expanded by 0.5%.

“The Autumn Budget provides an opportunity for Government to reinforce that momentum. FLA members would welcome measures that give SMEs greater confidence to invest, including a stable tax and regulatory environment, continued support for capital investment incentives, and policies that promote access to finance.

“Asset finance is one of the most important channels through which businesses invest in machinery, equipment and vehicles. Supporting that investment would help drive productivity, competitiveness and long-term economic growth.”

	Jun  2026	% change on prev. year	3 months to Jun 2026	% change on prev. year	12 months to Jun 2026	% change on prev. year
Total FLA asset finance (£m)	3,816	15	10,750	11	41,612	6
Total excluding high value (£m)	3,668	15	10,254	10	39,620	5
Data extracts: By asset:
Plant and machinery finance (£m)	801	17	2,404	21	8,536	12
Commercial vehicle finance (£m)	1,148	26	2,981	13	11,135	1
IT equipment finance (£m)	112	21	289	3	1,298	5
Business equipment finance (£m)	143	-15	417	-7	1,739	-2
Car finance (£m)	1,315	18	3,687	15	13,966	8
Aircraft, ships and rolling stock finance (£m)	30	-6	72	-54	346	-7
By channel:
Direct finance (£m)	1,765	28	4,802	15	18,249	8
Broker-introduced finance (£m)	755	2	2,193	0	8,937	6
Sales finance (£m)	1,147	8	3,259	8	12,434	1
By product:
Finance leasing (£m)	240	6	804	15	3,173	7
Operating leasing (£m)	877	3	2,436	4	10,165	3
Lease/Hire purchase (£m)	2,140	21	5,898	13	21,530	4
Other finance (£m)	508	38	1,445	21	5,541	26