Asset finance new business grew by 1% in February

New figures released by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew in February 2025 by 1% compared with the same month in 2024.  In the first two months of 2025, new business was 2% higher than in the same period in 2024.

The IT equipment finance and plant and machinery finance sectors reported new business up in February by 35% and 2% respectively, compared with the same month in 2024. The commercial vehicle finance sector reported a fall in new business of 3% over the same period.

Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The asset finance market reported further growth in February but at a slower pace than in recent months. New asset finance lending to SMEs and larger businesses both grew by 2% compared with February 2024.

“The US administration’s tariff hikes have weakened an already soft economic outlook. Investment will undoubtedly suffer as businesses face increased uncertainty about demand, higher taxes and higher than expected funding costs. Those that are investing are focusing on more efficient technology which asset finance providers play a key role in funding.”