Equipment, machinery and technology
Asset Finance for UK Businesses
Asset finance is a way to spread the cost of equipment, machinery, vehicles or technology over monthly payments instead of paying upfront. The asset itself secures the finance, so it's often easier to get than a loan and leaves your cash free for running the business.
Funding Plus compares hire purchase, finance lease and operating lease deals from UK asset finance lenders, for new and used equipment.
- New and used equipment
- Hire purchase and leasing
- Release cash from assets you already own
Reviewed by the Funding Plus team · Last updated October 2026
Step 1 of 3 · Asset Finance
How much do you need?
Takes about a minute. No impact on your credit score.
Asset Finance at a Glance
- Amounts
- £5k – £5m+
- Terms
- 1 – 7 years
- Deposit
- 0% – 20%
- Security
- The asset itself
- Best for
- Buying equipment
Typical figures across the market. Your offers depend on your business, the lender and the security available.
How Asset Finance Works
- 1Choose your assetGet a quote from your supplier for the equipment, new or used.
- 2Tell us the detailsThe cost, the supplier and how you'd like to pay.
- 3Compare finance offersWe show you hire purchase and lease options side by side.
- 4The lender pays the supplierYou start using the asset straight away and pay monthly.
How Much Does Asset Finance Cost?
Asset finance is usually priced as a fixed rate over the term. Because the asset secures the deal, rates are often lower than unsecured loans. Equipment that keeps its value well tends to get the best terms.
- Fixed monthly payments
- A deposit on some deals, often the VAT on hire purchase
- Documentation and option-to-purchase fees
- A balloon payment can lower monthly costs
Worked example
£60,000 of machinery on hire purchase
- Equipment cost
- £60,000
- Deposit
- £6,000
- Amount financed
- £54,000
- Rate and term
- 8% a year, 4 years
- Monthly payment
- £1,318.30
- Total cost of finance
- £9,278
Illustrative only, not a quote. Excludes VAT and fees.
Who Can Get Asset Finance?
- A UK business, including sole traders and start-ups
- An identifiable asset with a resale value
- Affordability for the monthly payments
- A supplier quote or invoice
- Credit history the lender can accept (asset-backed deals are often flexible)
What You'll Need to Apply
- Supplier quote or invoice
- Recent business bank statements
- Latest accounts for larger deals
- Director ID
Pros and Cons of Asset Finance
Advantages
- Keeps cash in the business
- Fixed payments make budgeting easy
- Easier to get than unsecured loans
- Possible tax advantages (ask your accountant)
Things to watch
- You don't own the asset until the final payment on hire purchase
- The asset can be repossessed if you fall behind
- Total cost is higher than paying cash
- Early settlement may cost extra
Types of Asset Finance
Hire purchase
Pay in instalments and own the asset after the final payment. Good for equipment you'll keep.
Finance lease
Rent the asset for most of its life. You never own it, but often share in its sale value.
Operating lease
Rent for part of the asset's life and hand it back. Good for tech you upgrade often.
Asset refinance
Release cash from equipment you already own by selling it to a lender and leasing it back.
Asset Finance vs Other Options
| Option | Best for | Typical speed | Security |
|---|---|---|---|
| Asset finance | Buying equipment and machinery | 2 – 10 days | The asset |
| Vehicle finance | Vans, trucks and fleets | 2 – 10 days | The vehicle |
| Business loan | Costs that aren't a single asset | Days to weeks | Optional |
| Secured business loan | Large projects | 2 – 6 weeks | Property |
Who Uses Asset Finance?
Asset finance is used wherever a business relies on equipment.
Customer story
“[Real customer story for Asset Finance: what they needed, how quickly it was arranged and what it let them do.]”
[Name], [Role], [Business name] · [Amount] asset finance
Asset Finance FAQs
What can I finance?
Almost any business asset with a resale value: machinery, plant, vehicles, IT, catering equipment, medical devices and more. Used equipment is usually fine.
Hire purchase or lease?
Hire purchase suits assets you want to own and keep. Leasing suits assets you'll upgrade or that lose value fast. Your accountant can advise on tax.
Can a start-up get asset finance?
Often yes, because the asset secures the deal. A deposit may be needed.
What is asset refinancing?
Releasing cash from equipment you already own. A lender buys it and you pay it back over a term while keeping use of it.
Do I pay VAT?
On hire purchase, VAT is usually paid upfront, often as the deposit. On leases, VAT is added to each payment.
Related Guides
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