AF new business climbs 7% in Nov

New figures released this month by the Finance & Leasing Association (“FLA”) show that total asset finance new business (primarily leasing and hire purchase) in November 2025 grew by 7pct compared with the same month in 2024.  In the eleven months to November 2025, new business was 3pct higher than in the same period in 2024.

The IT equipment finance and plant and machinery finance sectors reported growth in new business in November of 19pct and 5pct respectively, compared with the same month in 2024. The commercial vehicle finance sector reported new business growth of 1pct over the same period.

New asset finance lending to SMEs and larger businesses increased in November by 8pct and 9pct respectively, compared with the same month in 2024.

New asset finance lending to the services sector grew in November by 10pct compared with the same month in 2024, while new lending to the manufacturing and construction sectors grew by 8pct and 1pct respectively.

Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said, “The asset finance market returned its third consecutive month of growth in November with broad-based growth continuing in the final few months of 2025. New asset finance lending to SMEs is on track to reach a record high in 2025 overall.

“The FLA’s latest Industry Outlook Survey showed some improvement in optimism about growth as the proportion of respondents anticipating an increase in asset finance new business over the next year rose from 68pct to 77pct between Q3 and Q4 2025.  

“The economic outlook remains challenging for many businesses despite the lower inflation and interest rate environment.  The asset finance industry’s support for the real economy, and smaller businesses in particular, is vital to improving productivity and UK growth prospects.”

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