UK asset finance new business grows 3% in July 2025

The UK’s asset finance market recorded a 3% increase in new business in July 2025 compared with the same month last year, according to the latest figures from the Finance & Leasing Association (FLA).

In the seven months to July 2025, total new business was 1% higher than the same period in 2024, signalling steady growth despite economic uncertainty.

Several key sectors reported strong performances in July. Business new car finance rose 10% year-on-year, while IT equipment finance surged by 31%. However, the plant and machinery finance sector saw a 3% decline over the same period.

Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The asset finance market made a positive start to the third quarter of 2025 as new business grew for a second consecutive month in July.

“In the twelve months to July 2025, new business reached more than £40 billion. New lending to firms in the services sector increased by 7% in July which reflected the recent improvement in business activity within this sector. The industry supports businesses of all sizes invest and grow, and in July new lending to both SMEs and larger businesses increased by 4%.

Kilkelly also highlighted the industry’s role in driving business investment ahead of the Autumn Budget: “The asset finance industry funds almost a third of UK investment in equipment, machinery and vehicles. We urge the Government to streamline the capital allowances regime to include leasing in full expensing and create a targeted green tax allowance.”

	July 2025	% change on prev. year	3 months to Jul 2025	% change on prev. year	12 months to Jul 2025	% change on prev. year
Total FLA asset finance (£m)	3,497	3	10,179	1	40,016	1
Total excluding high value (£m)	3,310	3	9,722	2	38,311	2
Data extracts: By asset (excluding high value):
Plant and machinery finance (£m)	702	4	2,028	2	7,554	1
Commercial vehicle finance (£m)	883	-3	2,655	-1	11,015	4
IT equipment finance (£m)	106	31	285	-14	1,221	1
Business equipment finance (£m)	147	-9	452	6	1,740	-1
Car finance (£m)	1,167	7	3,465	3	13,506	-2
By channel:
Direct finance (£m)	1,447	2	4,433	7	17,544	2
Broker-introduced finance (£m)	797	7	2,220	-2	8,465	0
Sales finance (£m)	1,067	3	3,070	0	12,302	2
By product:
Finance leasing (£m)	270	7	719	-12	2,979	-11
Operating leasing (£m)	891	4	2,679	2	10,485	4
Lease/Hire purchase (£m)	1,737	-2	5,218	0	20,664	0
Other finance (£m)	438	6	1,232	25	4,527	7