Total asset finance new business (primarily leasing and hire purchase) grew in January 2025 by 2% compared with the same month in 2024, according to figures released by the Finance & Leasing Association (FLA).
For the 12 months to January 2025, new business was 3% higher than in the same period in 2024.
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The commercial vehicle finance and IT equipment finance sectors reported new business up in January by 10% and 43% respectively, compared with the same month in 2024. The business new car finance sector reported a fall in new business of 2% over the same period.
Commenting on the figures, Geraldine Kilkelly, Director of Research and Chief Economist at the FLA, said: “The asset finance market reported a second consecutive month of growth in January with the commercial vehicle finance sector making a strong start to 2025. New asset finance lending to SMEs grew in January by 2%, while to larger businesses held steady.
“The FLA’s Q1 2025 industry outlook survey suggests that more than three-quarters of asset finance respondents expect some increase in new business over the next year despite a challenging economic environment. Supporting businesses to invest in greener assets and more efficient technology in a lower interest rate environment should contribute to single-digit new business growth over the next year.”
