Asset finance new business grew by 2% in January

New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in January 2025 by 2% compared with the same month in 2024. In the twelve months to January 2025, new business was 3% higher than in the same period in 2024.

The commercial vehicle finance and IT equipment finance sectors reported new business up in January by 10% and 43% respectively, compared with the same month in 2024. The business new car finance sector reported a fall in new business of 2% over the same period.

“The asset finance market reported a second consecutive month of growth in January with the commercial vehicle finance sector making a strong start to 2025.

“New asset finance lending to SMEs grew in January by 2%, while to larger businesses held steady,” commented Geraldine Kilkelly, Director of Research and Chief Economist at the FLA.

“The FLA’s Q1 2025 industry outlook survey suggests that more than three-quarters of asset finance respondents expect some increase in new business over the next year despite a challenging economic environment. Supporting businesses to invest in greener assets and more efficient technology in a lower interest rate environment should contribute to single-digit new business growth over the next year.”

	Jan 2025	% change on prev. year	3 months to Jan 2025	% change on prev. year	12 months to Jan 2025	% change on prev. year
Total FLA asset finance (£m)	2,945	2	9,508	2	39,793	3
Total excluding high value (£m)	2,854	3	8,969	1	37,793	3
Data extracts: By asset:
Plant and machinery finance (£m)	493	-6	1,634	-2	7,486	-3
Commercial vehicle finance (£m)	826	10	2,642	11	11,049	10
IT equipment finance (£m)	122	43	365	18	1,301	8
Business equipment finance (£m)	121	0	401	-9	1,691	-9
Car finance (£m)	988	-2	3,157	-6	13,203	0
Aircraft, ships and rolling stock finance (£m)	8	-73	68	1	316	0
By channel:
Direct finance (£m)	1,340	2	4,166	0	17,053	1
Broker-introduced finance (£m)	593	-5	1,842	-4	8,530	3
Sales finance (£m)	921	9	2,960	7	12,210	5
By product:
Finance leasing (£m)	193	-18	767	-9	3,168	-9
Operating leasing (£m)	796	5	2,586	4	10,175	8
Lease/Hire purchase (£m)	1,500	5	4,724	2	20,751	2
Other finance (£m)	365	1	1,010	-7	4,209	3