Are lenders still funding business equipment? FLA lending figures to August 2026

The Finance & Leasing Association (FLA) is the trade body for asset finance, consumer finance and motor finance providers. On 19 October 2026 it published its lending figures for the eight months to August 2026. For a business thinking about new machinery, vans or equipment, they show whether lenders are still writing that business. Smart Funding Solutions is a broker, not a lender. We compare options across 300+ lenders and arrange business finance from £10,000 to £20 million.

01How much did FLA members lend?

FLA members provided £110.8 billion of new lending in the eight months to August 2026, 4% more than in the same period of 2025.

• £27.5 billion went to businesses to invest in machinery, equipment and vehicles, including £17.2 billion to SMEs.
• £83.3 billion went to households, including £28.9 billion for new and used car purchases.
• £45.5 billion came from non-bank lenders.

02Is asset finance growing?

Yes, and the growth picked up over the summer. The FLA’s figures for business asset finance show the following.

• August 2026, £2,965 million, up 10% on August 2025.
• Three months to August, £10,344 million, up 9%.
• Twelve months to August, £41,934 million, up 6%.

Consumer finance grew more slowly, up 3% in August to £9,673 million. So in the latest month, lending to businesses for equipment and vehicles grew faster than lending to households. For the wider picture of business borrowing, see our report on SME lending reaching a post-pandemic high and our UK small business statistics.

03What did the FLA ask for in the Budget?

Shanika Amarasekara, chief executive of the FLA, said that “finance is available to support investment and spending, but confidence remains the key to unlocking faster growth”. She called on the Autumn Budget to support measures that boost business investment, improve access to finance for SMEs, reduce energy costs and protect lenders’ ability to fund growth.

None of those has been announced. The Budget is on 28 October, and our pre-Budget checklist for business owners separates what is law today from what has only been reported. If you are buying equipment, our guide to asset finance and capital allowances explains how today’s tax reliefs work with finance. GOV.UK’s capital allowances guide explains the annual investment allowance, which lets you claim up to £1 million on certain plant and machinery.

04What can asset finance pay for?

Asset finance spreads the cost of equipment or vehicles over their working life, usually secured on the asset itself. The main types are these.

• Hire purchase, where you pay in instalments and own the asset after the final payment.
• Finance leases and operating leases, where you rent the asset for an agreed period.
• Sale and leaseback, which releases cash from equipment you already own.

Common uses include plant and machinery, vehicle fleets, IT equipment and used equipment. Our guide to hire purchase versus leasing compares the two, and the asset finance calculator shows what monthly payments could look like.

05What do lenders look at?

Rising lending totals do not mean every application succeeds. Lenders usually look at your accounts and bank statements, how long you have been trading, your credit history, the type, age and resale value of the asset, and whether a deposit is needed. Newer businesses and those with a weaker credit record can still find options, as our guide to bad credit asset finance explains, but the choice of lender is narrower.

Asset finance spreads the cost of equipment or vehicles over their working life, usually secured on the asset itself.

06What it means for your funding

The FLA figures show asset finance providers are lending more to businesses, not less. If you are planning to buy machinery, vehicles or equipment, it makes sense to compare lenders before you commit, because rates, deposits and terms vary a great deal between them. Our asset finance page explains the options. Get your Instant Quotes to see your lender matches instantly, with no credit check, then a broker helps you choose between hire purchase, leasing and a loan. Lenders make every decision, and all finance is subject to status.