Asset finance new business grew by 3% in July

New figures released by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) in July 2025 grew by 3% compared with the same month in 2024.  In the seven months to July 2025, new business was 1% higher than in the same period in 2024.

The business new car finance and IT equipment finance sectors reported new business up in July by 10% and 31% respectively, compared with the same month in 2024. The plant and machinery finance sectors 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 made a positive start to the third quarter of 2025 as new business grew for a second consecutive month in July.  In the twelve months to July 2025, new business reached more than £40 billion.

“New lending to firms in the services sector increased by 7% in July which reflected the recent improvement in business activity within this sector. The industry supports businesses of all sizes invest and grow, and in July new lending to both SMEs and larger businesses increased by 4%.

“In the run-up to the Autumn Budget we are expecting the Chancellor to announce a range of measures to boost productivity growth through raising business investment levels. The asset finance industry funds almost a third of UK investment in equipment, machinery and vehicles and therefore we urge the Government to streamline the capital allowances regime to include leasing in full expensing and create a new, targeted green tax allowance.”