Starting a business is no small feat. You’ve got the passion, the plan, and the drive. But if you’re like most new business owners, you’ve also got a long shopping list — equipment, vehicles, technology, maybe even specialist tools — and not enough cash to tick everything off.
That’s where Asset Finance for New Business comes in. It’s a way to access the equipment you need without fronting all the cash upfront. But if you’ve ever been told that asset finance is “only for established companies,” you’re not alone — and you’ve probably been misinformed.
Let’s clear that up.
First, what is asset finance?
At its core, Asset Finance for New Business is a funding solution that helps you purchase or lease physical assets your business needs — like machinery, vehicles, office equipment, or even IT infrastructure.
Instead of paying the full price upfront, you spread the cost over time in manageable monthly payments. It’s a smarter, more flexible way to equip your business for growth, especially when cash flow is tight or you’d rather invest your money elsewhere.
Types of asset finance include:
- Hire Purchase – You eventually own the asset after paying it off.
- Finance Lease – You use the asset for an agreed term and then return it or renew the lease.
- Operating Lease – Ideal for short-term needs, and the asset is usually returned at the end.
- Asset Refinance – Use owned assets to release working capital.
The myth: “New businesses can’t get asset finance”
One of the biggest misconceptions we hear is that Asset Finance for New Business isn’t possible. Some people assume lenders only deal with companies that have years of trading history, multiple directors, and a robust balance sheet.
The truth? That’s outdated thinking.
While it’s true that new businesses can’t always access finance on the same terms as established ones, it absolutely is possible to secure asset finance when you’re just starting out — especially if you know what to expect and how to prepare.
At Sorbus Finance, we help new startups and small companies every day get access to the funding they need. You just need to go in with the right plan and a bit of extra groundwork.
What lenders want to see
When you apply for Asset Finance for New Business, the lender will be keen to understand two things:
- Can you afford the repayments?
- Are you committed to the business succeeding?
Because there’s limited trading history to assess, lenders often look at other factors to make a decision. Here’s what might be asked of you:
1. A clear business plan
Show the numbers. Lenders love to see forecasts, cash flow projections, and realistic sales targets. It’s not about being perfect — it’s about demonstrating that you’ve thought things through and you’ve got a solid roadmap.
2. Proof of early success (if any)
Even if you’ve only been trading a few months, showing some early wins — contracts signed, invoices issued, or revenue generated — can help build confidence.
3. Personal creditworthiness
Without much business history to rely on, lenders may review the director’s personal credit profile as a sign of responsibility.
4. A Director’s Guarantee
This is common with Asset Finance for New Business. A Director’s Guarantee is a personal promise that if the business can’t meet its obligations, the director will step in. It’s not always required, but it’s often a helpful way to strengthen your case and secure better terms.
Why it’s worth the extra effort
We won’t sugarcoat it — securing Asset Finance for New Business might take a little more work upfront. But it’s often more straightforward than trying to raise large amounts of capital or convince a bank to issue a loan with no trading history.
And the benefits are well worth it:
- Protect your cash flow
You keep your working capital free for wages, marketing, or product development. - Access better equipment
Instead of settling for what you can afford now, finance gives you access to high-quality, reliable assets that can drive your business forward. - Pay as you earn
The asset helps you generate income as you pay it off — so it’s working for you from day one. - Build your credit profile
Successfully managing Asset Finance for New Business helps build your business’s credit, opening the door for future finance on better terms.
Common industries that benefit
Asset finance is used across almost every sector — and new businesses in the following areas often benefit hugely:
- Construction and trades (tools, vans, diggers)
- Manufacturing (machinery, packaging equipment)
- Retail and hospitality (shop fit-outs, kitchen equipment)
- Transport and logistics (fleet vehicles, GPS systems)
- Technology and media (computers, studio equipment)
Whatever industry you’re in, if you need equipment to do what you do, Asset Finance for New Business can be your best route to getting it.
How Sorbus Finance can help
At Sorbus Finance, we understand the unique challenges of getting started. We know that your business might not tick every traditional box yet — but we also know that with the right support, you can grow faster, smarter, and more sustainably.
Here’s how we support new businesses:
- We help you prepare a strong case to present to lenders.
- We explain your options in plain English — no jargon, no sales talk.
- We work with lenders who want to support new businesses.
- We’re always transparent about what’s required (including Director’s Guarantees).
- We tailor finance solutions to your actual business needs — no off-the-shelf packages.
You won’t be doing it alone. We’ll guide you through every step.
Final thoughts
Just because your business is new doesn’t mean it can’t access the funding it needs. Asset Finance for New Business is not only possible — it’s practical, accessible, and, for many startups, the smartest way to scale.
Yes, you might need to show a bit more commitment. And yes, you might be asked for a Director’s Guarantee. But with the right support and preparation, asset finance can open doors that cash flow alone can’t.
So don’t let myths or outdated thinking hold you back. If your business needs vehicles, equipment, or tools to grow, let’s find a way to make it happen.
Let’s talk.
At Sorbus Finance, we specialise in helping new businesses secure asset finance tailored to their goals. If you’re ready to explore your options, we’re ready to help.
Find out how we helped a new business secure a £100,000 asset using the Government Growth Scheme!
Don’t forget, there are loads of free resources to help start ups too like the HSBC Small Business Growth Programme!