The Finance & Leasing Association has released data showing total asset finance new business (mainly leasing and hire purchase) growth of 7% in October 2025 against the same month in 2024.
Over the first ten months of 2025, new business was 2% higher than in the equivalent period in the prior year.
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Within the sectors, business new car finance grew by 7% and plant and machinery finance rose by 6% in October 2025 versus October 2024.
The commercial vehicle finance sector, however, recorded a decrease of 6% during the same period.
Asset finance lending to both small and medium-sized enterprises (SMEs) and larger businesses each saw an 8% increase during October, measured against the same month in 2024.
Lending activity broken down by industry shows a rise in manufacturing sector lending of 34% year-on-year for October.
Construction sector lending grew by 8% while lending to the services sector increased by 3%.
Commenting on the figures, FLA research director and chief economist Geraldine Kilkelly said: “The asset finance market made a positive start to the final quarter of 2025, recording a second consecutive month of broad-based growth in October.
“FLA asset finance providers are on track to reach a record level of new business in 2025 of almost £41bn. The industry directly supports the real economy by providing finance to businesses of all sizes, funding a third of UK investment in machinery, equipment and vehicles annually.
“With around a third of high-growth firms using asset finance, the industry is playing a key role in funding the investment needed to raise productivity and household living standards.”
Previous data from the association showed that in September 2025, new asset finance business rose by 11% year-on-year, with total volumes at £3.88bn.
