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

How much asset finance can a UK business get?

A UK business can often finance most or all of the purchase price of a suitable vehicle, machine or piece of equipment, but the amount is set by the asset, the business’s affordability, trading record and the lender’s view of risk. The useful question is not the biggest figure available. It is the facility that the asset can comfortably support.

A lender can be comfortable funding a £250,000 machine for an established manufacturer and cautious about a £25,000 van for a new business. Asset finance is asset-backed, but the asset does not make the business case irrelevant.

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.

What lenders assess before setting the facility

The first question is whether the asset is financeable. Lenders look at its type, age, supplier, expected working life and resale market. Mainstream commercial vehicles and recognised machinery are generally easier to place than highly bespoke equipment with no secondary market.

The second question is whether the business can maintain the payments. That means looking at turnover, profit, bank conduct, existing commitments, the directors’ experience and, for some applications, personal credit or guarantees. The weighting varies widely across a panel of more than 100 lenders.

Asset quality: age, condition, make, model, supplier and resale value.
Business performance: turnover, gross margin, management accounts and bank statements.
Affordability: existing monthly debt commitments and the asset’s expected contribution to revenue.
Trading history: established trading can help, but new businesses may still be considered with the right asset and director profile.
Structure: deposit, term length, VAT treatment, balloon or residual assumptions where applicable.

The deposit changes the conversation

A larger deposit reduces the amount at risk for the lender and lowers the monthly payment for the business. That does not mean a large deposit is always wise. Using £30,000 of working capital to reduce a payment can create a tighter business than using a smaller deposit and retaining cash for trading.

For suitable applications, zero-deposit proposals can be available. For younger businesses, older equipment or more complex cases, a contribution may be needed. The correct amount is the one that strengthens the proposal without starving the business of cash.

A practical affordability calculation

Start with the cash the asset is expected to generate or protect each month. A new van might let a trades business complete two additional jobs a week. A machine may remove subcontracting costs or reduce a production bottleneck. Compare the conservative monthly gross-profit gain with the proposed finance payment, maintenance, insurance and operating costs.

A commercially aware proposal shows the lender why the asset is needed, what it will do, and how the business will pay if the expected contract starts later than planned. That is stronger than simply requesting the maximum advance.

Why a broker panel can matter

Lenders do not all have the same appetite. One may prefer new HGVs for established operators. Another may be more comfortable with used machinery, agricultural assets, specialist vehicles or newer businesses with experienced directors. A broker’s value is in matching the case to the lenders most likely to understand it.

Sorbus Finance is a commercial finance broker, not a lender. That means the final decision, rate and terms belong to the finance provider. A strong broker presents the commercial story clearly and avoids sending a case repeatedly to lenders who are unlikely to want it.

Worked example

Illustrative affordability case

A landscaping company wants a £55,000 compact excavator. It has a signed pipeline of work and currently hires an equivalent machine at £1,900 a month when demand is high. An asset-finance proposal needs to show more than the asset price. It should show current hire spend, forecast utilisation, monthly payment comfort and the company’s existing commitments.

If the business uses a 10% contribution, it asks a lender to finance £49,500. The lender may then consider the company accounts, bank conduct, director experience and the excavator’s resale value before deciding whether that structure is acceptable.

Asset price: £55,000
Illustrative contribution: 10%, £5,500
Illustrative finance required: £49,500
Existing hire spend: £1,900 per month

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

Can I get 100% asset finance?

It can be possible for suitable assets and applicants, but it is not guaranteed. The lender will consider the asset, business performance, existing commitments, trading history and directors before deciding whether a deposit is needed.

Does asset finance have a maximum amount?

There is no single market-wide maximum. Facilities can range from modest equipment purchases to substantial vehicle fleets and machinery investments. The practical limit comes from lender appetite, asset security and the business’s ability to service the agreement.

Will asset finance affect my ability to borrow elsewhere?

It can. The commitment is part of the business’s overall financial position and may be considered by future lenders. It can also preserve overdraft or unsecured-loan headroom by matching long-life borrowing to a long-life asset.

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

How much asset finance can a UK business get?

What lenders assess before setting the facility

The deposit changes the conversation

A practical affordability calculation

Why a broker panel can matter

Illustrative affordability case

Questions business owners ask

Make the next finance decision with the full picture

More commercial asset finance guides

Buy outright or finance?

Hire purchase vs finance lease

Start-up asset finance

Cash flow and borrowing impact