Asset finance new business grows 11% in September

New figures released today by the Finance & Leasing Association (FLA) reveal that total asset finance new business — primarily leasing and hire purchase — grew by 11% in September 2025 compared with the same month last year.

The data show that, over the first nine months of 2025, new business volumes were 2% higher than in the same period of 2024, reflecting steady growth in investment by UK businesses despite ongoing economic challenges.

Growth was particularly strong in several key sectors. Both the business new car finance and plant and machinery finance markets reported 11% increases in new business year-on-year. In contrast, the commercial vehicle finance sector saw a 2% decline in new business compared with September 2024.

By business size, new asset finance lending to SMEs rose by 14%, while lending to larger businesses increased by 9% over the same period.

“The asset finance market reported a strong end to the third quarter of 2025 as monthly new business reached its second highest total so far this year. It was particularly encouraging to see broad-based growth across asset sectors.

“The industry supported businesses across all sectors of the economy in September, with new finance provided to firms in the agricultural, manufacturing and services sectors growing at double-digit rates.

“The asset finance market has a diverse range of providers – both bank and non-bank – who are crucial to achieving higher levels of business investment. As we approach the Autumn Budget, we urge the Government to recognise the importance of this market to the growth agenda by bringing leasing into the full expensing regime, and creating a new, targeted green tax allowance.”

	Sep  2025	% change on prev. year	3 months to Sep 2025	% change on prev. year	12 months to Sep 2025	% change on prev. year
Total FLA asset finance (£m)	3,883	11	10,075	4	40,324	2
Total excluding high value (£m)	3,764	12	9,676	5	38,621	3
Data extracts: By asset (excluding high value):
Plant and machinery finance (£m)	680	11	1,955	4	7,603	1
Commercial vehicle finance (£m)	1,002	-2	2,563	-6	10,868	1
IT equipment finance (£m)	125	18	335	11	1,227	1
Business equipment finance (£m)	169	22	467	5	1,777	4
Car finance (£m)	1,358	13	3,385	8	13,691	1
By channel:
Direct finance (£m)	1,743	16	4,333	6	17,766	4
Broker-introduced finance (£m)	854	14	2,321	6	8,553	0
Sales finance (£m)	1,167	6	3,022	1	12,301	3
By product:
Finance leasing (£m)	277	-5	786	-3	2,941	-11
Operating leasing (£m)	981	16	2,569	6	10,587	6
Lease/Hire purchase (£m)	1,976	8	5,053	1	20,728	1
Other finance (£m)	530	30	1,293	16	4,679	10