July AF new business up 2%

New figures released this morning by the Finance & Leasing Association (“FLA”) show that asset finance new business (primarily leasing and hire purchase) grew by 2pct in July 2026 compared with the same month in 2025. In the first seven months of 2026, new business was 6pct higher than in the same period last year. 

Growth was reported by most of the main asset sectors. The plant and machinery finance and business equipment finance sectors reported new business up by 9pct and 6pct respectively in July, while new business for commercial vehicles and used cars increased by 7pct and 29pct. New lending to SMEs rose by 8pct, while lending to larger businesses fell by 10pct.

Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said that “the strength of SME lending is particularly encouraging, reaching a record £25.6 billion over the past year.

“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."

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