Asset finance grows by 7%

New figures released by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) in October 2025 grew by 7% compared with the same month in 2024. In the ten months to October 2025, new business was 2% higher than in the same period in 2024.

The business new car finance and plant and machinery finance sectors reported growth in new business in October of 7% and 6% respectively, compared with the same month in 2024. The commercial vehicle finance sector reported a fall in new business of 6% over the same period.

New asset finance lending to SMEs and larger businesses each grew in October by 8% compared with the same month in 2024.

New asset finance lending to the manufacturing sector increased in October by 34% compared with the same month in 2024, while new lending to the construction and services sectors grew by 8% and 3% respectively.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The asset finance market made a positive start to the final quarter of 2025, recording a second consecutive month of broad-based growth in October.

“FLA asset finance providers are on track to reach a record level of new business in 2025 of almost £41 billion. The industry directly supports the real economy by providing finance to businesses of all sizes, funding a third of UK investment in machinery, equipment and vehicles annually.

“With around a third of high-growth firms using asset finance, the industry is playing a key role in funding the investment needed to raise productivity and household living standards.”