New figures released by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 15% in June 2026 compared with the same month in 2025. In the first half of 2026, new business was 7% higher than in the same period last year.
Growth was broad-based across asset sectors. The plant and machinery finance and IT equipment finance sectors reported new business growth of 17% and 21% respectively in June, while new business for commercial vehicles and new cars increased by 26% and 18%. New lending to SMEs rose by 11%, while lending to larger businesses increased by 24%.
Growth was also recorded across the major sectors of the economy. New lending to businesses in the services sector increased by 21% compared with June 2025, while lending to firms in both the manufacturing and construction sectors grew by 7%.
Asset finance plays a key role in funding investment in productive assets such as machinery, vehicles and technology. Continued growth in asset finance suggests businesses are investing to expand capacity, improve efficiency and adopt new technologies.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “June’s results are encouraging because they point to continued business investment across the economy, mirroring the broader economic picture in Q2 2026, when business investment grew by 1.7% and the services sector, the main driver of GDP growth, expanded by 0.5%.
“The Autumn Budget provides an opportunity for Government to reinforce that momentum. FLA members would welcome measures that give SMEs greater confidence to invest, including a stable tax and regulatory environment, continued support for capital investment incentives, and policies that promote access to finance.
“Asset finance is one of the most important channels through which businesses invest in machinery, equipment and vehicles. Supporting that investment would help drive productivity, competitiveness and long-term economic growth.”
