New figures released today by the Finance & Leasing Association (FLA) show that total asset finance new business (primarily leasing and hire purchase) grew by 9% in March 2026 compared with the same month in 2025. In Q1 2026, new business was 3% higher than in Q1 2025.
The plant and machinery finance sector reported growth in new business in March of 16% compared with the same month in 2025. The commercial vehicle finance and business new car finance sectors reported new business growth of 13% and 16% respectively, over the same period.
New asset finance lending to SMEs grew by 11% in March compared with the same month in 2025, while new lending to larger businesses increased by 3% over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said:
“The asset finance market made a positive start to 2026, with new business up 3% in the first quarter and a record £4.5 billion of new lending in March. That performance reflects the essential role finance plays in maintaining momentum when the economic environment is more uncertain and businesses are making careful investment decisions.
“SMEs remain at the heart of this market. Growth was driven by smaller firms investing in plant and machinery that supports productivity, efficiency and day‑to‑day operations. This is not about speculative expansion, but about businesses making smart, practical investments that help them stay competitive and resilient.
“Credit performance remains strong, and that stability matters. Asset finance continues to provide a vital bridge between caution and confidence, helping businesses adapt, manage costs and plan for the long term. In a slower‑growth economy, that role is more important than ever.”
