FLA members provide £163bn of new lending in 2025

Members of the Finance & Leasing Association (FLA) provided a record £162.8 billion of new lending in 2025, up 5% on the previous year, according to figures released by the industry body today.

The lending spanned asset finance, consumer finance and motor finance markets, reflecting continued demand from both businesses and households despite a challenging economic backdrop.

Businesses received £40.3 billion in funding to support investment in machinery, equipment and vehicles. Of this total, £24.4 billion was provided to small and medium-sized enterprises (SMEs), underlining the sector’s role in supporting smaller firms’ investment and cash flow.

Households accounted for the majority of new lending, receiving £122.5 billion during the year. Within that total, £41.1 billion was used to finance new and used car purchases.

The data also highlights the importance of alternative providers in the market, with non-bank lenders supplying £65.2 billion of the overall lending total.

Shanika Amarasekara, chief executive of the FLA, said the figures demonstrate the sector’s importance to the wider economy.

“Asset finance, motor finance and consumer finance are essential to the UK’s real economy,” she said. “They help businesses invest, support households with the cost of major purchases and keep economic activity moving across the country.

“Our latest data highlights the significant role FLA members have played over the past year, continuing to provide finance to businesses and consumers despite a challenging economic backdrop.

“With the right economic and regulatory environment our sector can continue to play a crucial role in supporting investment, helping businesses grow and ensuring households can access the finance they need.”

	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 new business (£m)	13,925	8	41,216	6	162,795	5
By customer:
Business (asset) finance (£m)	3,536	3	10,544	5	40,329	1
Consumer finance (£m)	10,388	10	30,672	7	122,465	6
Within the above:
Motor finance (£m)	3,928	10	12,662	6	54,505	5