Asset finance new business drops 7% in April

New data released today by the Finance & Leasing Association (FLA) reveals that total asset finance new business fell by 7% in April 2025 compared to the same month last year, marking the first monthly decline this year for the sector.

The figures show that despite April’s dip, new business across the first four months of 2025 remained 2% higher than during the same period in 2024, suggesting that the sector retains underlying resilience.

April’s downturn was driven by contractions across several key segments. Commercial vehicle finance saw new business fall by 8%, while business new car finance declined by 4% compared to April 2024. Business equipment and plant and machinery finance also each recorded a 5% drop.

“April saw the asset finance market report its first fall in new business so far this year, with high value deals weighing on growth,” Kilkelly said. “Excluding facilities of more than £20 million, new business was only 1% lower than in April 2024, and grew by 3% in the first four months of 2025.”

The FLA’s Q2 2025 industry outlook survey painted a cautiously optimistic picture. Over three-quarters of asset finance providers reported expectations of some increase in new business over the next 12 months, despite ongoing concerns about subdued levels of business investment.

Kilkelly added that the possibility of further interest rate cuts and growth opportunities in sectors like construction and green technology could help lift asset finance activity, contributing to “single-digit new business growth by value over the next 12 months.”

	Apr  2025	% change on prev. year	3 months to Apr 2025	% change on prev. year	12 months to Apr 2025	% change on prev. year
Total FLA asset finance (£m)	3,507	-7	10,686	2	39,954	1
Total excluding high value (£m)	3,429	-1	10,352	4	38,171	2
Data extracts: By asset:
Plant and machinery finance (£m)	667	-5	2,077	1	7,607	1
Commercial vehicle finance (£m)	934	-8	2,893	-3	11,127	5
IT equipment finance (£m)	102	0	316	11	1,312	13
Business equipment finance (£m)	142	-5	471	6	1,740	-5
Car finance (£m)	1,263	1	3,758	6	13,440	-2
Aircraft, ships and rolling stock finance (£m)	23	-57	97	-14	301	-15
By channel:
Direct finance (£m)	1,629	1	4,751	5	17,293	0
Broker-introduced finance (£m)	784	4	2,225	-1	8,513	2
Sales finance (£m)	1,017	-8	3,376	5	12,365	4
By product:
Finance leasing (£m)	249	4	692	-11	3,078	-10
Operating leasing (£m)	1,016	13	2,887	13	10,501	7
Lease/Hire purchase (£m)	1,757	-11	5,615	-1	20,667	0
Other finance (£m)	408	-28	1,227	6	4,283	1