New figures released today by the Finance & Leasing Association (FLA) show that asset finance new business (primarily leasing and hire purchase) grew by 10% in August 2026 compared with the same month in 2025. In the eight months to August 2026, new business was 6% higher than in the same period last year.
The plant and machinery finance sector reported new business 30% higher than in August 2025, boosted by high value transactions. The commercial vehicle finance and business car finance sectors also reported new business growth, of 10% and 6% respectively over the same period. By contrast, the IT equipment and business equipment finance sectors reported falls in new business in August of 8% and 15% respectively.
New asset finance lending to SMEs grew in August by 11% compared with the same month in the previous year, while to larger businesses increased by 9%.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“Asset finance new business grew by 10% in August, with growth boosted by high-value transactions, predominantly in the plant and machinery finance sector. As a result, the market recorded a seventh consecutive month of growth.
“Asset finance plays a vital role in supporting business investment, enabling firms of all sizes to acquire the vehicles, equipment and technology needed to improve efficiency, expand capacity and grow.
“The latest research from The Productivity Institute suggests the UK could do more to encourage productive investment by removing barriers that increase its cost. Ahead of this week's Autumn Budget, it has called for new plant, machinery and productivity-enhancing improvements to be excluded from business rates calculations and for improvement relief to be made permanent.
“Such measures could strengthen incentives to invest, with asset finance helping businesses translate those opportunities into higher productivity, stronger competitiveness and sustainable growth."
