Asset finance for UK businesses: vehicles, machinery & equipment

Asset finance is a type of business lending that allows you to acquire vehicles, machinery, equipment, or technology by spreading the cost over monthly payments rather than paying upfront. The asset itself typically acts as security for the finance, which usually means lower rates than unsecured lending.

Most tangible business assets with a useful life of two or more years can be financed: commercial vehicles and vans, HGVs and trailers, agricultural and construction machinery, manufacturing plant, printing equipment, catering equipment, medical and dental equipment, IT hardware, and renewable energy installations.

With hire purchase (HP), you own the asset outright once all payments are made. With a finance lease, the lender retains ownership throughout the term and you use the asset, often with an option to extend the lease or sell the asset on the lender's behalf at the end. HP is typically preferred when ownership matters; finance lease suits assets you expect to replace regularly.

Many asset finance agreements require no deposit at all. When a deposit is required, it typically ranges from 10% to 20% of the asset value. A larger deposit reduces your monthly payments and the total cost of finance. We will assess your circumstances and advise on the most appropriate structure.

Yes, many lenders provide asset finance for used assets, including vehicles and machinery purchased at auction or from a private seller. The asset's age, condition, and residual value affect the terms available. We work with lenders who specialise in second-hand asset finance.

Hire purchase agreements typically appear on the balance sheet as both an asset and a liability. Finance leases under IFRS 16 also appear on the balance sheet for most businesses. Operating leases are treated as off-balance-sheet expenses in some cases. Your accountant can advise on the most appropriate structure for your reporting needs.

For straightforward cases, such as a commercial vehicle or piece of equipment up to around £100,000, decisions can often be made within 24–48 hours and funds released within a few days. Larger or more complex deals may take one to two weeks. Using a broker speeds up the process significantly.