AF new business up 1pct across 2025

New figures released this morning by the Finance & Leasing Association (“FLA”) show that total asset finance new business (primarily leasing and hire purchase) grew by 3pct in December 2025 compared with the same month in 2024.  In 2025 as a whole, new business was 1pct higher than in 2024.

The business equipment finance and plant and machinery finance sectors reported growth in new business in December of 2pct and 21pct respectively, compared with the same month in 2024. The commercial vehicle finance sector reported a 3pct fall in new business over the same period.

New asset finance lending to SMEs grew by 11pct in December compared with the same month in 2024, and by 4pct in 2025 overall. By contrast, new business to larger businesses fell by 11pct in December but remained steady in 2025 as a whole.

Looking at different sectors, in 2025 new asset finance lending to the services and construction sectors grew by 1pct compared with 2024, while new lending to the manufacturing sector was 5pct higher over the same period.

Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said, “New asset finance business exceeded £40 billion in 2025, marking a fifth consecutive year of growth.

“Despite a softer second quarter, the 5pct expansion recorded in both the third and fourth quarters points to market resilience during a period of heightened uncertainty in the run up to the Autumn Budget.

“The asset finance market provided a record level of new lending to SMEs of more than £24 billion in 2025. By enabling small businesses to invest in essential equipment, machinery and vehicles while preserving cash flow, the industry is supporting short‑term liquidity and helping to strengthen long‑term productivity across the economy.”

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