Total asset finance new business grew by 11% in March 2025 compared with the same month last year, according to new figures released by the Finance & Leasing Association (FLA).
The growth marks the highest level of new business in March for two years and the second highest monthly total on record.
In Q1 2025, overall new business was 5% higher than in Q1 2024.
The data revealed significant growth across multiple sectors, with business equipment finance showing particularly strong performance with a 34% increase compared to March 2024.
The plant and machinery finance sector also performed well, with new business growing by 8% over the same period, while business new car finance was up by 19%.
Geraldine Kilkelly, director of research and chief economist at the FLA, said: “The asset finance market reported its highest level of new business in March for two years and the second highest monthly total on record.
“The recovery in the business new car finance sector was supported by the issue of a new registration plate and customers bringing forward purchases ahead of increases in vehicle excise duty from April 2025.”
Kilkelly added: “March saw a pick-up in new asset finance lending to SMEs which grew by 16% compared with the same month in 2024, while new lending to larger businesses increased by 5%.
“The asset finance market returned a strong performance in Q1 2025 despite a challenging economic environment and greater uncertainty about the outlook.
“Further cuts in interest rates should help those businesses in a position to invest as they focus on driving growth through the use of greener assets and more efficient technology.
“The asset finance industry provides significant support to businesses of all sizes, funding a third of UK investment in vehicles, machinery and equipment in 2024.”
