FLA members provide £111bn in new lending as asset finance grows

Finance & Leasing Association (FLA) members provided £110.8bn of new lending to UK businesses and households in the first eight months of 2026, an increase of 4% compared with the same period last year.

The latest figures highlight continued growth across the asset finance, consumer finance and motor finance markets, despite ongoing economic uncertainty.

Of the total lending provided between January and August, £27.5bn supported business investment in machinery, equipment and vehicles, including £17.2bn advanced to SMEs.

A further £83.3bn was provided to households, including £28.9bn to finance new and used car purchases.

Non-bank lenders accounted for £45.5bn of the total, highlighting their contribution to financing businesses and consumers across the UK.

	Aug 2026	% change on prev. year	3 months to Aug 2026	% change on prev. year	12 months to Aug 2026	% change on prev. year
Total FLA new business (£m)	12,638	4%	41,290	4%	167,954	5%
By customer:
Business (asset) finance (£m)	2,965	10%	10,344	9%	41,934	6%
Consumer finance (£m)	9,673	3%	30,946	3%	126,020	5%
Within the above:
Motor finance (£m)	3,736	4%	13,505	6%	56,930	7%

Asset finance records 10% growth in August

The latest monthly figures show that FLA members provided £12.6bn of new finance in August 2026, up 4% compared with the same month last year.

Asset finance recorded particularly strong growth, with new business increasing 10% year-on-year to £2.97bn.

Over the three months to August, asset finance new business rose 9% to £10.3bn, while the total for the 12 months to August reached £41.9bn, an increase of 6%.

Consumer finance new business increased 3% in August to £9.67bn, while motor finance, which forms part of the consumer finance total, grew 4% to £3.74bn.

Motor finance also recorded growth of 6% over the three months to August and 7% over the latest 12-month period, reaching £56.9bn.

Across all FLA markets, new business totalled £168bn in the 12 months to August 2026, representing annual growth of 5%.

“The latest FLA lending figures show that businesses and consumers continue to invest in their future despite ongoing uncertainty, demonstrating the resilience of the UK economy. Finance is available to support investment and spending, but confidence remains the key to unlocking faster growth.”

Amarasekara highlighted the forthcoming Autumn Budget as an opportunity for the Government to encourage longer-term investment decisions.

“The Autumn Budget is an opportunity to give businesses and households the confidence to look ahead and make long-term decisions. Measures that boost business investment, improve access to finance for SMEs, reduce energy costs and protect lenders’ ability to fund growth would help unlock private sector investment, raise productivity and strengthen the foundations for sustainable economic growth.”

The figures follow the publication of the FLA’s 2026 Impact Report, The Hidden Engine Behind UK Growth, which highlighted the sector’s role in supporting investment across the economy.

FLA members provided £163bn of new finance during 2025, including £40bn to businesses and the public sector, and financed more than a third of UK investment in machinery, equipment and purchased software.