Asset finance grows by 14%

New figures released by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew by 14% in April 2026 compared with the same month in 2025.  In the first four months of 2026, new business was 6% higher than in the same period in 2025.

The plant and machinery finance sector reported new business up by 36% in April compared with the same month in 2025. The commercial vehicle finance and business new car finance sectors reported new business growth of 5% and 18% respectively, over the same period.

New asset finance lending to SMEs grew in April by 8% compared with the same month in 2025, while new lending to larger businesses increased by 26% over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The asset finance market made a strong start to the second quarter, underlining the sector’s resilience as businesses continue to invest despite a more uncertain economic backdrop.

“In the near term, however, cost pressures and geopolitical uncertainty are still weighing on confidence, with higher energy prices and interest rates testing affordability. The recent agreement between the US and Iran to ease tensions offers some hope that these pressures may begin to moderate, improving the economic outlook over the medium term.

“While risks remain, there are also clear opportunities. Demand for finance continues to shift towards essential and productivity-enhancing investment, while market developments, technological change and the transition to net zero are creating new areas for growth.”