Asset finance new business sees 2% rise in May – FLA
The trade body said total new business reached £3.2bn in May, while lending in the first five months of 2026 was 5% higher than during the same period last year.
Asset finance new business grew by 2% year-on-year in May, with lending reaching a record £41.1bn over the past 12 months, according to figures from the Finance & Leasing Association (FLA).
The trade body said total new business reached £3.2bn in May, while lending in the first five months of 2026 was 5% higher than during the same period last year.
Business new car finance and commercial vehicle finance both recorded annual growth of 7% in May, while plant and machinery finance increased by 9%.
New asset finance lending to SMEs rose by 7% year-on-year, marking a ninth consecutive month of growth, while lending to larger businesses fell by 6%.
Over the 12 months to May, total asset finance new business reached £41.1bn, up 5% on the previous year.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The asset finance market continued to grow in May, with annual new business reaching a record £41.1 billion.
“While growth was more modest than in recent months, new business remained robust in core sectors including plant and machinery and commercial vehicle finance.
“SME lending also recorded a ninth consecutive month of growth, underlining the sector’s vital role in helping businesses invest, grow and improve productivity.
“The economic environment remains challenging. Although UK GDP returned to growth in May, recent surveys suggest business activity and confidence has softened.
“We expect the asset finance market to remain resilient, supported by firms’ ongoing investment needs, but growth is likely to remain measured while businesses contend with weaker demand, elevated borrowing costs and continued geopolitical uncertainty.”
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