Equipment and asset finance
Pay for a van, a kitchen or a machine over its working life instead of out of this month's cash. The asset is the security, not your home.
How equipment and asset finance works
Rather than paying £40,000 for a van out of working capital, a funder buys it and you pay for it over one to five years. With hire purchase you own the asset outright after the final payment; with a finance lease you pay to use it and either return it, extend, or upgrade at the end. Because the asset itself secures the agreement, approval leans less on the balance sheet, and the cash stays in the business for stock and wages. New or used assets, dealer or private sale.
Asset finance is arranged with specialist partner funders alongside our own book; we tell you which before you sign, and the terms and total cost are on the offer either way.
How it works
Four steps, with the timings we actually work to.
Apply online
Business name, what you do, roughly what goes through the till, the amount and what it's for. No credit search at this stage.
A specialist calls you back
Confirms it's a fit, tells you which product suits the numbers and what it would typically cost. If it isn't a fit, you hear that now.
Decision in writing
Send six months of bank statements (open banking takes under a minute), card statements if you take cards, and photo ID. The offer shows the amount, the total to repay and how it's collected.
Funds in your account
E-sign, and the money goes to the business account. Repayments start as agreed.
| Van price (ex VAT) | £36,000 |
| Deposit (10%) | £3,600 |
| Amount financed | £32,400 |
| Term | 48 months |
| Rate | 11% a year, flat |
| Monthly payment | £972 |
| Total payable | £46,656 plus deposit |
| At the end | You own the van |
Illustrative figures using typical market terms; not a real customer. Your offer depends on your trading and our assessment.
Eligibility
- UK limited company or LLP
- Six months of business bank statements
- A quote or invoice for the asset
- Photo ID for a director
- The asset insurable and identifiable (serial number, registration)
- Software-only or purely intangible purchases
- Assets with no resale market
- Sole traders below £25,000 (regulated)
Hire purchase vs finance lease vs refinance
| Hire purchase | Finance lease | Asset refinance | |
|---|---|---|---|
| You own it | Yes, after the final payment | No; return, extend or upgrade | Yes; you already do |
| Deposit | Typically 10% | Often first payments in advance | None; releases cash from an asset you own |
| VAT | Paid up front on the asset | Spread across the rentals | Depends on structure |
| Monthly cost | Higher (paying off the whole value) | Lower (paying off less than the whole value) | Based on asset value |
| Best for | Vans, machinery you'll keep | Kit you'll replace in 3 years (IT, fitness) | Raising working capital from vehicles or plant |
What owners use it for
VAT, tax and the small print
Hire purchase and leasing are treated differently for VAT and tax: on hire purchase VAT is usually paid up front and the asset goes on your balance sheet with capital allowances; on a lease VAT is spread across the rentals, which are an operating expense. Which is better depends on your VAT position and profits, and your accountant can tell you in five minutes. A director's personal guarantee is usual; the asset itself is the primary security. Applying runs no credit search.
A direct lender, in plain terms
Our own underwriters. Your file isn't sold on to a panel or passed around a market; the people who assess it are the people who fund it.
The total on your offer, nothing before funds are released. No application fee, no broker commission built into your price.
Finance to UK limited companies and LLPs for business purposes is not regulated consumer credit. The legal name of the funding entity is on every offer document.
Questions about equipment and asset finance
What can be financed?
Almost any identifiable asset with a resale value: vehicles, kitchen and refrigeration equipment, salon, clinic and gym kit, machinery, fit-outs, EPOS. Not software licences or pure services.
Can I finance used equipment or a private sale?
Yes, subject to age and a valuation for older assets.
Hire purchase or lease: which is cheaper?
Leasing has lower monthly payments because you're not paying off the whole value; hire purchase costs more per month but leaves you owning the asset. The calculator shows both.
How much deposit do I need?
Typically 10% on hire purchase; some leases take the first few payments in advance instead.
How quickly can I buy the asset?
Decision in as little as 24 hours with statements, ID and the quote; the supplier is usually paid within 48 hours of signing.
Can I refinance equipment I already own?
Yes. Asset refinance releases cash from vehicles or plant you own outright, repaid over one to five years.
Is a personal guarantee required?
Usually, yes, alongside the asset as security.
Will applying affect my credit score?
No. The enquiry runs no search.
Other ways we fund UK businesses
See what your business could be offered
Two minutes to tell us about the business. A funding specialist calls you back, usually the same working day, with a straight answer.