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

Can a start-up business get asset finance for vehicles or machinery?

Yes, a start-up can obtain asset finance for a suitable vehicle, machine or piece of equipment, even without years of company accounts. The strongest applications show director experience, a sensible deposit, a clear trading plan and an asset that lenders can understand and resell if necessary.

A new company is not automatically a weak applicant. A newly incorporated plumbing firm led by someone with ten years of industry experience is a very different risk from a start-up with no relevant background, no cash contribution and no plan for using the asset.

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 makes a start-up application credible

Lenders know that many solid businesses start with a vehicle, machine or equipment purchase. They cannot rely on a long company trading history, so they look for other evidence that the proposal is commercially sound. Director CVs, relevant contracts, deposits, personal credit profile and a clear explanation of the asset’s role can all matter.

The key is to make the request proportionate. A start-up asking for one working van with a realistic order book is easier to understand than a new company seeking a large fleet with no established customers. That does not mean bigger proposals are impossible. It means the evidence needs to match the scale.

Relevant director experience in the industry or trade.
A realistic business plan and cash-flow forecast, especially for larger tickets.
A deposit or contribution where this is commercially sensible.
A clear supplier quotation and an asset with an identifiable resale market.
An explanation of how the asset will generate revenue from the first months of trading.

Vehicles and machinery are assessed differently from general start-up costs

Asset finance is generally suited to assets with a recognisable value, such as vans, HGVs, construction equipment, agricultural machinery, manufacturing plant and specialist equipment. The lender has the asset as security, which can make it more suitable than unsecured borrowing for that specific purchase.

Costs with no resale value, such as marketing, initial stock, salaries or website development, usually need a different funding conversation. Mixing everything into a single asset-finance request can make a good case harder to place.

How to avoid weakening the application

Do not apply to every lender you can find. Repeated searches or applications can make a weak profile look weaker, particularly where the case has not been matched to the right lender. First establish the asset, budget, deposit and supporting information, then approach lenders with the right start-up appetite.

Be open about challenges. A recent adverse-credit issue, a gap in bank conduct or a shortfall in deposit is easier to address when explained properly. The goal is not to make a case look perfect. It is to make it understandable and financeable.

Director guarantees and personal commitments

Many start-up facilities involve a personal guarantee from one or more directors. A personal guarantee can create personal liability if the company does not meet its obligations, so it should be read carefully and, where appropriate, discussed with an independent adviser.

A broker should explain this before an application progresses. It is part of being commercially aware, not an afterthought added once the equipment has been ordered.

Worked example

Illustrative new-trades-business proposal

A newly incorporated electrical contractor needs a £28,000 van and £9,000 of testing equipment. The director has eight years of experience, three confirmed customer jobs, a £6,000 contribution and a clean explanation of expected monthly work. The van and equipment are identifiable, income-producing assets.

A lender may still require a personal guarantee and review the director’s credit profile, but the application is materially stronger than a request that only says the company is new and needs £37,000.

Van and equipment cost: £37,000
Illustrative contribution: £6,000
Director industry experience: 8 years
Confirmed initial jobs: 3

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

How long do I need to trade before applying for asset finance?

There is no universal minimum. Some lenders consider new businesses and newly formed companies. The asset, director background, deposit, personal profile and business plan can become more important where company trading history is limited.

Can I get start-up asset finance with bad credit?

It can be possible in some circumstances, but it depends on the nature and recency of the credit issue, the asset, the deposit and the wider strength of the proposal. Being transparent early helps a broker approach appropriate lenders.

Do I need a personal guarantee for start-up asset finance?

Many start-up applications do involve a personal guarantee, but terms vary by lender and case. You should understand the guarantee and its implications before accepting any agreement.

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

Can a start-up business get asset finance for vehicles or machinery?

What makes a start-up application credible

Vehicles and machinery are assessed differently from general start-up costs

How to avoid weakening the application

Director guarantees and personal commitments

Illustrative new-trades-business proposal

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

How much can I finance?

Cash flow and borrowing impact