Asset finance new business grows 2% in July

UK asset finance new business grew by 2% in July 2026 compared with the same month last year, with SME lending continuing to perform strongly, according to the latest figures from the Finance & Leasing Association (FLA).

The data, covering primarily leasing and hire purchase, showed that new business during the first seven months of 2026 was 6% higher than during the corresponding period in 2025.

Growth was recorded across most of the main asset sectors in July. Plant and machinery finance new business increased by 9% year-on-year, while business equipment finance grew by 6%.

Commercial vehicle finance recorded a 7% increase, while used car finance delivered particularly strong growth, with new business up 29% compared with July 2025.

The figures also highlighted a divergence between lending to smaller and larger businesses. New lending to SMEs increased by 8% in July, while lending to larger businesses fell by 10%.

According to the FLA, SME asset finance lending reached a record £25.6 billion over the 12 months to July, underlining the role of leasing and hire purchase in helping smaller businesses fund investment without placing additional pressure on working capital.

“The asset finance market continued to grow in July, reflecting businesses’ willingness to invest in the vehicles, machinery and equipment needed to drive productivity and growth. The strength of SME lending is particularly encouraging, reaching a record £25.6 billion over the past year.

“That matters because investment is the engine of long-term economic growth. Asset finance helps businesses invest and expand while preserving valuable working capital.”

Looking ahead to the Autumn Budget, Kilkelly called on the Government to provide greater certainty for businesses and maintain an environment that supports investment in productive assets.

She added: “As the Autumn Budget approaches, the priority for the Government should be clear: create the conditions for businesses to invest.

“Greater certainty, a competitive tax environment and policies that encourage investment in productive assets would help turn resilient business demand into stronger productivity and faster economic growth.”

	Jul  2026	% change on prev. year	3 months to Jul 2026	% change on prev. year	12 months to Jul 2026	% change on prev. year
Total FLA asset finance (£m)	3,560	2	10,578	6	41,669	6
Total excluding high value (£m)	3,477	5	10,229	8	39,776	6
Data extracts: By asset:
Plant and machinery finance (£m)	763	9	2,266	12	8,599	13
Commercial vehicle finance (£m)	950	7	3,004	13	11,191	2
IT equipment finance (£m)	103	-3	300	5	1,295	2
Business equipment finance (£m)	157	6	432	-4	1,745	-1
Car finance (£m)	1,212	4	3,627	10	14,010	7
Aircraft, ships and rolling stock finance (£m)	17	-45	69	-58	332	-13
By channel:
Direct finance (£m)	1,520	5	4,691	11	18,315	8
Broker-introduced finance (£m)	778	-2	2,233	1	8,919	6
Sales finance (£m)	1,179	10	3,305	8	12,542	2
By product:
Finance leasing (£m)	259	-4	726	1	3,160	6
Operating leasing (£m)	862	-4	2,475	1	10,126	2
Lease/Hire purchase (£m)	1,922	11	5,827	12	21,714	5
Other finance (£m)	434	-1	1,358	10	5,541	25