Credit, Collections & Insolvency News
Latest figures released by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) in May 2025 was at a similar level to the same month in 2024. In the first five months of 2025, new business was 1% higher than in the same period in 2024.
The business new car finance and business equipment finance sectors reported new business up in May by 4% and 6% respectively, compared with the same month in 2024. The commercial vehicle finance and plant and machinery finance sectors reported falls in new business of 4% and 7% respectively, over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said “The performance of the asset finance market in April and May reflected a more subdued economic picture in the second quarter of 2025 following a strong first quarter rebound.
“The asset finance market so far this year has reported growth in the value of new business provided to the major industry sectors – services, agriculture, and manufacturing – while holding steady in the construction sector.
“Our latest research suggests the asset finance industry will report single-digit new business growth by value in 2025 as a whole, as businesses look to invest in more efficient technology and greener vehicles, machinery and equipment in a lower interest rate environment.”
| May
2025 |
% change on prev. year | 3 months to
May 2025 |
% change on prev. year | 12 months to
May 2025 |
% change on prev. year | |
| Total FLA asset finance (£m) | 3,376 | 0 | 11,055 | 0 | 39,866 | 1 |
| Total excluding high value (£m) | 3,234 | 0 | 10,700 | 3 | 38,087 | 1 |
| Data Extracts:
By asset: |
||||||
| Plant and machinery finance (£m) | 642 | -7 | 2,114 | -1 | 7,560 | 0 |
| Commercial vehicle finance (£m) | 893 | -4 | 2,954 | -4 | 11,061 | 3 |
| IT equipment finance (£m) | 86 | -38 | 301 | -13 | 1,259 | 2 |
| Business equipment finance (£m) | 136 | 6 | 487 | 12 | 1,748 | -4 |
| Car finance (£m) | 1,187 | 5 | 3,961 | 7 | 13,451 | -3 |
| Aircraft, ships and rolling stock finance (£m) | 102 | 467 | 142 | 33 | 384 | 10 |
|
By channel: |
||||||
| Direct finance (£m) | 1,612 | 15 | 4,993 | 8 | 17,434 | 0 |
| Broker-introduced finance (£m) | 684 | -15 | 2,275 | -2 | 8,396 | 0 |
| Sales finance (£m) | 937 | -10 | 3,432 | -1 | 12,257 | 2 |
|
By product: |
||||||
| Finance leasing (£m) | 221 | -16 | 723 | -10 | 3,037 | -12 |
| Operating leasing (£m) | 930 | 2 | 2,988 | 9 | 10,446 | 5 |
| Lease/Hire purchase (£m) | 1,710 | -3 | 5,765 | -2 | 20,620 | 0 |
| Other finance (£m) | 435 | 37 | 1,333 | 10 | 4,400 | 4 |