The Finance & Leasing Association (FLA) has reported a 1% growth in total asset finance new business, including leasing and hire purchase, in February 2025 compared with February 2024.
The IT equipment finance and plant and machinery finance sectors showed increases, contributing to this growth.
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In the first two months of 2025, asset finance new business was 2% higher than the same period in 2024.
The IT equipment finance sector registered a 35% jump, while the plant and machinery finance sector rose 2% in February 2025 compared to the year-ago period.
However, the commercial vehicle finance sector reported a decline, with new business falling by 3% over the same period.
Finance leasing volumes totalled £190m ($251.33m), reflecting a 20% drop. Operating leasing performed more positively, recording £762m, a 4% increase.
Lease/hire purchase activity remained flat over the latest period at £1.56bn and other finance solutions experienced growth, with values reaching £329m, a 27% increase.
FLA director of research and chief economist Geraldine Kilkelly said: “The asset finance market reported further growth in February but at a slower pace than in recent months. New asset finance lending to SMEs and larger businesses both grew by 2% compared with February 2024.
“The US administration’s tariff hikes have weakened an already soft economic outlook. Investment will undoubtedly suffer as businesses face increased uncertainty about demand, higher taxes and higher-than-expected funding costs. Those that are investing are focusing on more efficient technology which asset finance providers play a key role in funding.”
The total asset finance new business in January 2025 grew by 2% compared to January 2024.
For the 12 months leading up to January 2025, new business was 3% higher than the same period in 2024.
