What is a commercial finance broker?

A commercial finance broker is a regulated intermediary that searches the lending market on behalf of a business to find the most suitable finance product — whether that is asset finance, a business loan, a commercial mortgage, or invoice finance. Unlike going directly to a bank, a broker compares deals across many lenders simultaneously. Sorbus Finance is an independent whole-of-market broker with access to 100+ UK lenders, and charges no upfront fees — the broker is paid by the lender only on completion.

What is asset finance and how does it work for UK businesses?

Asset finance allows UK businesses to acquire vehicles, machinery, manufacturing equipment, IT hardware, and other business assets without paying the full cost upfront. Instead of a large capital outlay, you make fixed monthly payments over an agreed term — typically 2 to 7 years. Common structures include hire purchase (you own the asset at the end), finance lease (lender owns it; you use it), and operating lease. A broker like Sorbus Finance compares rates across 100+ lenders to find the best deal for your circumstances.

What types of assets can I finance for my business?

Asset finance covers a wide range of business assets including commercial vehicles and vans, HGVs and fleet vehicles, agricultural machinery, construction plant and equipment, manufacturing machinery, catering equipment, medical and dental equipment, IT hardware and software, and renewable energy installations. Most tangible business assets with a useful life of 2 years or more can be financed.

What is the difference between hire purchase and finance lease?

With hire purchase (HP), you pay a series of monthly instalments and own the asset outright at the end of the agreement — it appears on your balance sheet from day one. With a finance lease, the lender retains legal ownership throughout the term; you use the asset and pay rentals, and at the end you can often extend the lease or sell the asset on the lender's behalf. Hire purchase suits businesses that want ownership; finance lease suits those that want to preserve capital and replace assets regularly.

How much can I borrow for a business loan in the UK?

UK business loans are typically available from £5,000 up to £5 million or more, depending on your business turnover, trading history, and creditworthiness. Unsecured business loans (no collateral required) are generally available up to £250,000–£500,000 for well-established businesses. Secured loans against property or assets allow higher borrowing. Sorbus Finance compares products across 100+ lenders to match your business with the right facility and terms.

Can I get asset finance or a business loan with bad credit?

Yes. While a strong credit profile opens the widest range of lenders and best rates, many specialist lenders in the UK consider businesses and directors with adverse credit history — including CCJs, previous defaults, or prior declines. The key factors are trading history, turnover, affordability, and asset quality. A broker can identify lenders most likely to approve your application before a formal search, protecting your credit score from unnecessary hard searches.

What is the difference between asset finance and a business loan?

A business loan provides a lump sum of cash that can be used for any purpose — working capital, stock, growth investment — and is repaid with interest over a set term. Asset finance is structured specifically around a particular asset (e.g. a van or piece of machinery), with the asset itself typically acting as security. Because the lender has a tangible asset to recover if payments are missed, asset finance usually offers lower interest rates than unsecured business loans.

What is invoice finance and how does it help cashflow?

Invoice finance lets a business release cash tied up in unpaid customer invoices — typically up to 90% of the invoice value within 24 hours — rather than waiting 30, 60, or 90 days for customers to pay. There are two main types: invoice factoring (the lender manages your sales ledger and collects payment) and invoice discounting (you retain control of collections). It is especially useful for businesses with seasonal cashflow, long payment terms, or rapid growth.

What documents do I need to apply for business finance?

Lenders typically require: 3–6 months of business bank statements, the last 1–2 years of filed accounts or management accounts, a completed application form with director details, proof of identity and address for all directors, and (for asset finance) a quote or invoice for the asset being purchased. For commercial mortgages, additional documentation such as property details, rental income schedules, and a business plan may be required. A broker guides you through exactly what each lender needs for your specific application.

How long does it take to arrange business finance?

Simple asset finance or small business loans can be approved and funded within 24–48 hours. More complex facilities — commercial mortgages, large structured loans, or cases with adverse credit — typically take 2–6 weeks. Using a broker speeds up the process because we know which lenders are actively lending, what their criteria are, and how to package your application to maximise approval chances and minimise delays.

How does a finance broker get paid?

Sorbus Finance is paid a commission by the lender on successful completion of a finance arrangement — not by the business owner. There are no upfront fees at any stage. This means you receive whole-of-market advice and lender comparison at no direct cost, and our interest is always aligned with finding you the right deal.

What is the Sorbus Finance Business Finance Health Check?

The Business Finance Health Check is a free, proprietary diagnostic tool developed by Sorbus Finance. It assesses your business across four areas: lending readiness, risk and resilience, exit strategy readiness, and financial controls. It takes under 5 minutes and produces an instant scored report — identifying gaps before you approach lenders, and giving you a prioritised action plan. It is completely free, confidential, and carries no obligation.

Do I need to have been trading for a certain length of time to get business finance?

Most mainstream lenders prefer at least 2 years of trading history, but specialist lenders will consider businesses from 6 months or even earlier for certain products — particularly asset finance, where the asset itself provides security. Start-up business loans are available for businesses under 12 months old, though terms may differ. A broker identifies which lenders are suitable for your trading age before any formal applications are made.

Commercial asset finance guide

Hire purchase vs finance lease: which is right for your business asset?

Choose hire purchase when your business wants a clear route to owning the vehicle or machine after the agreement. Choose a finance lease when the commercial priority is use of the asset, preserving capital and managing replacement or disposal at the end of the term.

Both structures spread the cost of an asset. The important difference is what your business needs from that asset at the end, and how much residual-value risk it is comfortable carrying.

Discuss your asset: 01246 383500 Check your lending position

A proper commercial view: Sorbus Finance is an independent broker, not a lender. We compare suitable options from a panel of more than 100 UK lenders. Rates, approval and terms depend on the asset, business and lender assessment.

Hire purchase is built around eventual ownership

With hire purchase, the lender owns the asset during the agreement and your business makes fixed repayments. Once all contractual payments and any option-to-purchase fee are made, ownership transfers to the business. This is often a natural fit for vans, HGVs, plant and machinery a business expects to retain.

HP is not simply a lease with a different name. It usually puts the business in the position of owning an asset at the end, with the upside and downside that brings. If the asset has useful life beyond the finance term, that can be valuable. If its resale value collapses, the business carries that economic risk.

Common fit: a contractor buying a machine it expects to keep after the agreement.
Common fit: a delivery firm funding vans that can continue working after the final payment.
Cash-flow feature: the full asset price, less any deposit, is normally being repaid over the term.
End point: ownership usually passes after the final contractual payment and option fee.

A finance lease is built around use, not ownership

With a finance lease, the lender retains legal ownership and the business pays for use of the asset over an agreed period. At the end of the term, the business may be able to continue renting, return the asset, or sell it to a third party on the lender’s behalf and retain a share of sale proceeds where the agreement permits.

This can suit machinery or equipment that has a predictable replacement cycle, particularly where the business wants to avoid tying up capital in an asset it may not want to own long term. Exact end-of-term options are agreement-specific and need checking before the proposal is accepted.

Common fit: equipment with a planned technology refresh cycle.
Common fit: an asset where the business wants use but does not need legal ownership.
Cash-flow feature: payments can reflect the agreed rental structure and any residual assumptions.
End point: ownership normally remains with the finance provider.

Do not let the tax label make the decision for you

Accounting and tax treatment is important, but it does not replace a commercial decision. Under current accounting standards, many lease arrangements are recognised on the balance sheet, and treatment can differ by business and agreement. Your accountant should check the implications before you proceed.

A finance broker should first establish whether you need to own the asset, how long you will keep it, the expected residual value, and how the payment profile fits your trading cycle. Only then is it sensible to compare structures.

Four questions that usually settle the choice

Ask how long the asset will remain productive, whether your business needs ownership, whether it has a reliable resale market, and how quickly the asset is likely to be replaced. These questions tend to reveal the better structure faster than a generic comparison table.

For example, a high-mileage delivery van may suit a planned replacement approach. A specialist machine that is expected to remain useful for a decade may justify ownership. There is no universal winner.

Worked example

Illustrative commercial vehicle comparison

A business is replacing a £45,000 refrigerated van. If it intends to keep the van for seven years and expects it to remain productive after the finance term, hire purchase can give a straightforward ownership route. If the firm replaces vehicles every three or four years to protect reliability and customer perception, a finance lease may be worth considering.

The payment is only one line in the decision. Expected mileage, maintenance exposure, resale value, VAT treatment and the business’s replacement policy all need to be aligned before choosing the facility.

Vehicle price: £45,000
Typical comparison term: 36 to 60 months
Ownership under HP: Usually after final payment
Ownership under finance lease: Retained by funder

Figures are illustrative only. They are not a quote or an offer of finance. Your business, asset, deposit, credit profile and lender assessment determine the actual terms.

Questions business owners ask

Is hire purchase better than a finance lease?

Neither is automatically better. Hire purchase usually suits a business that wants ownership. A finance lease can suit a business focused on use, planned replacement and preserving capital.

Can a finance lease include used equipment?

It can, subject to the asset’s age, supplier, condition, remaining useful life and the lender’s policy. Older assets may have a shorter maximum term or need a larger contribution.

Do I need a deposit for HP or finance lease?

Not always. Deposits vary by asset, business profile, lender and proposal. A contribution may improve terms and reduce monthly payments, but zero-deposit options can be available for suitable applications.

Make the next finance decision with the full picture

Before applying, compare the asset cost, deposit, expected earnings, operating costs and current commitments. Our advisers can help you decide whether hire purchase, finance lease or a different facility is the more commercial option.

Explore asset finance Use the HP vs finance lease tool Visit the Start Up Hub

Hire purchase vs finance lease: which is right for your business asset?

Hire purchase is built around eventual ownership

A finance lease is built around use, not ownership

Do not let the tax label make the decision for you

Four questions that usually settle the choice

Illustrative commercial vehicle comparison

Questions business owners ask

Make the next finance decision with the full picture

More commercial asset finance guides

Buy outright or finance?

How much can I finance?

Start-up asset finance

Cash flow and borrowing impact