Asset finance new business grew by 9% in March

New asset finance business grew by 9% in March 2026 compared with the same month last year, according to the latest figures released by the Finance & Leasing Association.

The figures show the asset finance market made a positive start to the year, with total new business in Q1 2026 rising 3% compared with the first quarter of 2025.

Growth was driven by strong performances across several key sectors. The plant and machinery finance market reported a 16% increase in new business in March, while commercial vehicle finance grew by 13%. Business new car finance also recorded growth of 16% over the same period.

SME lending continued to outperform the wider market, with new asset finance lending to smaller businesses increasing by 11% in March compared with the same month in 2025. New lending to larger businesses rose by 3%.

According to the FLA, the market delivered a record £4.5 billion of new lending during March, highlighting continued demand for finance despite ongoing economic uncertainty.

“The asset finance market made a positive start to 2026, with new business up 3% in the first quarter and a record £4.5 billion of new lending in March,” she said.

“That performance reflects the essential role finance plays in maintaining momentum when the economic environment is more uncertain and businesses are making careful investment decisions.”

Kilkelly said SME demand remained central to market growth, particularly among firms investing in operational efficiency and productivity.

“SMEs remain at the heart of this market. Growth was driven by smaller firms investing in plant and machinery that supports productivity, efficiency and day to day operations,” she said.

“This is not about speculative expansion, but about businesses making smart, practical investments that help them stay competitive and resilient.”

She added that strong credit performance across the market continued to provide stability during a period of slower economic growth.

“Credit performance remains strong, and that stability matters,” Kilkelly said. “Asset finance continues to provide a vital bridge between caution and confidence, helping businesses adapt, manage costs and plan for the long term. In a slower growth economy, that role is more important than ever.”

	Mar  2026	% change on prev. year	3 months to Mar 2026	% change on prev. year	12 months to Mar 2026	% change on prev. year
Total FLA asset finance (£m)	4,519	9	10,284	3	40,655	1
Total excluding high value (£m)	4,437	11	9,968	4	38,799	2
Data extracts:  By asset:
Plant and machinery finance (£m)	932	16	2,198	15	8,126	6
Commercial vehicle finance (£m)	1,257	11	2,815	2	10,819	-3
IT equipment finance (£m)	121	7	322	-3	1,289	-2
Business equipment finance (£m)	157	-24	423	-6	1,769	2
Car finance (£m)	1,702	16	3,488	4	13,519	2
Aircraft, ships and rolling stock finance (£m)	42	132	107	30	430	30
By channel:
Direct finance (£m)	1,914	11	4,409	3	17,612	3
Broker-introduced finance (£m)	921	14	2,266	11	8,960	6
Sales finance (£m)	1,602	9	3,294	1	12,227	-1
By product:
Finance leasing (£m)	298	19	702	10	3,076	0
Operating leasing (£m)	1,086	8	2,479	-1	10,118	-1
Lease/Hire purchase (£m)	2,601	13	5,540	3	20,878	0
Other finance (£m)	478	0	1,383	19	5,287	22