Asset finance new business grows 1% in 2025

Total asset finance new business in the UK increased by 1% in 2025, reaching more than £40 billion and marking the fifth consecutive year of growth, according to new figures released by the Finance & Leasing Association (FLA).

The data shows that new business rose by 3% in December 2025 compared with the same month in 2024, suggesting a stronger end to the year despite softer activity earlier in 2025.

Performance varied across key sectors. The business equipment finance market recorded a 2% rise in new business in December year-on-year, while the plant and machinery finance sector reported a much stronger increase of 21% over the same period. In contrast, the commercial vehicle finance sector saw new business fall by 3% compared with December 2024.

Small and medium-sized enterprises (SMEs) drove much of the growth. New asset finance lending to SMEs increased by 11% in December compared with the same month in 2024 and rose by 4% across 2025 as a whole. Lending to larger businesses declined by 11% in December, although activity in that segment remained flat over the year overall.

Sectoral data shows steady demand across much of the economy. New asset finance lending to both the services and construction sectors increased by 1% in 2025 compared with 2024, while lending to manufacturing rose by 5% over the same period.

“New asset finance business exceeded £40 billion in 2025, marking a fifth consecutive year of growth,” she said. “Despite a softer second quarter, the 5% expansion recorded in both the third and fourth quarters points to market resilience during a period of heightened uncertainty in the run up to the Autumn Budget.

“The asset finance market provided a record level of new lending to SMEs of more than £24 billion in 2025. By enabling small businesses to invest in essential equipment, machinery and vehicles while preserving cash flow, the industry is supporting short term liquidity and helping to strengthen long term productivity across the economy.”

	Dec  2025	% change on prev. year	3 months to Dec 2025	% change on prev. year	12 months to Dec 2025	% change on prev. year
Total FLA asset finance (£m)	3,536	3	10,544	5	40,329	1
Total excluding high value (£m)	3,201	3	9,763	4	38,420	2
Data extracts: By asset:
Plant and machinery finance (£m)	706	21	1,980	11	7,837	3
Commercial vehicle finance (£m)	862	-3	2,773	-2	10,769	-3
IT equipment finance (£m)	166	-4	351	8	1,298	4
Business equipment finance (£m)	150	2	432	-1	1,797	6
Car finance (£m)	1,111	0	3,450	4	13,385	1
Aircraft, ships and rolling stock finance (£m)	11	-67	73	-9	405	20
By channel:
Direct finance (£m)	1,486	5	4,711	7	17,497	3
Broker-introduced finance (£m)	705	17	2,167	9	8,729	2
Sales finance (£m)	1,010	-7	2,885	-4	12,194	1
By product:
Finance leasing (£m)	375	16	889	8	3,011	-6
Operating leasing (£m)	882	-5	2,706	3	10,138	0
Lease/Hire purchase (£m)	1,628	3	5,047	-1	20,699	0
Other finance (£m)	445	17	1,420	45	5,065	22