Asset finance new business grows 1% in June 2025
The UK asset finance market saw modest growth in June 2025, with new business volumes rising by 1% compared to the same month last year, according to figures released today by the Finance & Leasing Association (FLA). The steady performance continued across the first half of the year, with H1 2025 also showing a 1% year-on-year increase.
June’s growth was largely driven by strong performances across several key sectors. Commercial vehicle finance rose by 7%, plant and machinery finance by 10%, and business equipment finance surged by 23% compared to June 2024. However, IT equipment finance continued to struggle, recording a 15% drop in new business during the same period.
Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said the market’s resilience reflects the crucial role asset finance plays in supporting UK businesses:
“The asset finance market ended the second quarter with growth across many key sectors, including agricultural and construction equipment finance, which saw new business up in June by 14% and 7% respectively. Despite the challenging economic environment, the asset finance market reported growth of 1% in H1 2025 compared with H1 2024.”
Kilkelly added that the outlook for the remainder of the year remains cautiously optimistic, with economic conditions expected to improve: “The asset finance industry plays a key role in supporting businesses of all sizes to invest and grow, which is vital to getting the UK economy back on track. We expect further cuts in Bank Rate this year, which will help SMEs considering investment in business equipment, machinery and vehicles. The asset finance industry is expected to report single-digit new business growth by value in 2025 as a whole.”
| June 2025 | % change on prev. year | 3 months to Jun 2025 | % change on prev. year | 12 months to Jun 2025 | % change on prev. year | |
| Total FLA asset finance (£m) | 3,308 | 1 | 10,110 | -3 | 39,898 | 1 |
| Total excluding high value (£m) | 3,180 | 4 | 9,762 | 0 | 38,196 | 2 |
| Data extracts: By asset: |
||||||
| Plant and machinery finance (£m) | 684 | 10 | 1,994 | -1 | 7,620 | 2 |
| Commercial vehicle finance (£m) | 907 | 7 | 2,711 | -3 | 11,117 | 5 |
| IT equipment finance (£m) | 93 | -15 | 281 | -20 | 1,242 | 0 |
| Business equipment finance (£m) | 168 | 23 | 447 | 7 | 1,779 | 0 |
| Car finance (£m) | 1,110 | -2 | 3,513 | 0 | 13,429 | -2 |
| Aircraft, ships and rolling stock finance (£m) | 32 | -27 | 156 | 37 | 373 | 7 |
| By channel: | ||||||
| Direct finance (£m) | 1,380 | 4 | 4,540 | 5 | 17,472 | 2 |
| Broker-introduced finance (£m) | 736 | 2 | 2,203 | -3 | 8,409 | 0 |
| Sales finance (£m) | 1,064 | 6 | 3,019 | -4 | 12,315 | 3 |
| By product: | ||||||
| Finance leasing (£m) | 228 | -25 | 698 | -13 | 2,962 | -13 |
| Operating leasing (£m) | 858 | 0 | 2,732 | 3 | 10,450 | 5 |
| Lease/Hire purchase (£m) | 1,762 | 4 | 5,229 | -4 | 20,687 | 1 |
| Other finance (£m) | 368 | 43 | 1,202 | 5 | 4,501 | 7 |
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