The leasing industry, in 2025, found itself at the intersection of economic pressure, shifting customer behaviour, and a growing demand for smarter, more flexible finance solutions. And while the sector has long been key to unlocking business growth, this year highlighted challenges and opportunities in equal measure – particularly for core SME customers navigating complex and uncertain business conditions.
From fluctuating confidence to rising expectations around efficiency and technology, 2025 has reshaped not just how customers lease, but how the industry needs to keep innovating to best serve the businesses that need us most.
A defining feature of 2025 was the shift in SME sentiment. Leasing providers across the UK saw a marked change in customer confidence as the year progressed following the previous year’s “survive till 25” mindset driven by the potential of a change in government.
Regional teams – grenke has 10 in the UK – consistently reported that SMEs were increasingly cautious and less optimistic compared with the start of the year. Several themes drove this:
-
Economic uncertainty, driven by inflation trends, taxation changes, and unpredictable government policy
-
Rising overheads, squeezed margins and reduced appetite for investment
-
Cashflow pressures, prompting SMEs to hold onto outdated assets longer accompanied by painfully slow sales cycles
-
Recruitment and retention challenges, particularly in technical sectors compounded by employment costs
Unlike the findings in grenke’s New Lease of Life Report – which pointed to emerging optimism – 2025 revealed low sentiment, with some regions reporting mild confidence and others highlighting deep hesitation.
For the leasing industry, this changing customer mindset required:
-
Effective and empathic communication
-
Clearer value propositions
-
More education around financing benefits
Despite our established role as a finance partner, funding access remained one of the biggest challenges for SMEs. Our New Lease of Life Report shows that:
-
69% of SMEs cite access to finance as a key business challenge
-
75% believe new equipment would help re-energise their business
-
Yet only 44% currently lease equipment
Speaking to our regional leaders, we saw the following barriers impacting customer adoption of leasing:
-
Awareness remains low – A significant number of SMEs still misunderstand leasing, often confusing it with hire purchase or assuming it applies only to vehicles or heavy machinery.
-
Trust barriers persist – Smaller businesses remain wary of perceived contract “catches,” termination concerns, and complexity.
-
Paperwork and compliance challenges – For time-poor SME decision-makers, the perceived administrative burden, worry about hidden clauses, media scaremongering all deter engagement.