Asset finance grows by 2%

New figures released by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 2% in July 2026 compared with the same month in 2025. In the first seven months of 2026, new business was 6% 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 9% and 6% respectively in July, while new business for commercial vehicles and used cars increased by 7% and 29%. New lending to SMEs rose by 8%, while lending to larger businesses fell by 10%.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The asset finance market continued to grow in July, reflecting businesses’ willingness to invest in the vehicles, machinery and equipment needed to drive productivity and growth. The strength of SME lending is particularly encouraging, reaching a record £25.6 billion over the past year.

“That matters because investment is the engine of long-term economic growth. Asset finance helps businesses invest and expand while preserving valuable working capital.

“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.”