The Finance & Leasing Association (FLA) has announced that its members achieved a record £154.6bn ($195.56bn) in new lending in 2024, representing a 2% increase compared with 2023.
This financing was offered across asset, consumer, and motor finance markets.
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Out of the total lending, £39.7bn was allocated to businesses for investments in machinery, equipment, and vehicles.
Small and medium-sized enterprises (SMEs) received £23.5bn of this amount. Households benefited from £114.9bn in financing, with £39bn dedicated to the purchase of new and used cars.
Non-bank lenders provided £62.7bn of the total lending.
In 2024, FLA said its members financed a third of the UK's investment in machinery, equipment, and purchased software.
Additionally, they provided almost a third of the total new consumer credit in the UK, including financing for approximately 80% of private new car registrations.
FLA director general Stephen Haddrill said: “Our latest market data shows the extent of support FLA members have provided to the real economy during a period of heightened uncertainty. Higher economic growth will not come without boosting private sector business investment in vehicles, machinery and equipment, a third of which was financed by FLA members in 2024.
“We urge the government to fully fund the recently announced pilot for a green finance variant of the Growth Guarantee in the Spring Spending Review and to extend the full expensing regime to include leasing. Following through on the reform of the Consumer Credit Act will also allow the financial services industry to continue to innovate and to better serve those that are unable to access credit.”
The report follows iwoca’s latest SME Expert Index, which found that 38% of UK finance brokers consider tax cuts essential for driving SME growth in 2025.
