Can I get asset finance if my business makes no profit?

Yes. A lack of historical profit does not automatically result in a decline. Lenders will focus on whether your business can afford the future monthly payments from current cash flow, and they will assess the strength of the asset acting as security. They will also consider director experience and any recent improvement in trading.

Will applying involve a hard credit check?

No, not initially. We begin every enquiry with a soft search. This means we can check your options across our specialist lending panel without leaving a footprint on your business or personal credit file. A hard search is only carried out once you have reviewed an offer and given explicit consent to proceed with a specific lender.

We made a loss last year, will this be an automatic decline?

Not necessarily. Some specialist lenders will look beyond historical accounts to understand why the loss occurred, such as heavy investment, one-off bad debts, or seasonal issues, and what the current and future trading position looks like.

What if my business is new and has no accounts?

Asset finance for startups is entirely possible. Since you don't have historical accounts, lenders will evaluate your industry experience, personal financial stability, the importance of the asset to your operations, and the size of your deposit. No minimum trading history is required as a blanket rule across our whole panel.

Can I get asset finance if I have HMRC arrears?

It may be possible. A formal Time to Pay (TTP) arrangement that is being maintained can help some lenders assess the position. We will need to explain the situation clearly and provide supporting evidence, but HMRC arrears do not automatically close the door on every funding option.

Asset Finance

Can a loss-making business get asset finance? It may be possible.

A paper loss in your accounts, or even a recent cash loss, does not automatically close the door to funding. We help UK businesses explore finance for vehicles, machinery and equipment when mainstream lenders cannot help.

Speak to an Adviser: 01246 383500 Make an Enquiry

Soft search first. No footprint on your credit file.

The commercial reality

Why lenders look beyond profit and loss

Mainstream banks often use automated scorecards. If your most recent accounts show a net loss, the result may not reflect the wider context.

Specialist lenders may recognise that a loss-making year does not necessarily mean a failing business. Companies can record losses after significant investment, expansion, one-off bad debts, or the timing and accounting treatment of expenditure. Sometimes, a fundamentally sound business has faced a temporary disruption.

With asset finance, the financed asset typically supports the facility. A van, excavator or CNC machine with an identifiable resale market may give a lender more comfort than an unsecured request. This can help a specialist lender assess hire purchase for a loss-making company in its full commercial context.

Tax efficiency

Paper losses are often driven by significant capital allowances or director remuneration strategies, not poor trading.

One-off events

A difficult contract, a bad debt, or supply chain issues may have caused a historical loss that is now resolved.

Startups & scale-ups

Asset finance for startups is common. Early-stage businesses frequently run at a loss while building market share.

Asset security

Hard assets with strong secondary markets provide lenders with a reliable fallback, reducing their exposure.

Approval criteria

What lenders actually assess

If the bottom line is negative, lenders look elsewhere to build comfort. These are the factors we use to present the application clearly.

Asset Security

Equipment with a strong resale value, such as commercial vehicles, HGVs or yellow plant, may give a lender more confidence. The asset age, condition and likely resale market all matter.

Director Experience

A track record of success in your industry goes a long way. Lenders back people as much as balance sheets. Your personal financial stability also helps.

Affordability & Cash Flow

Can the business comfortably make the monthly repayments from its current bank statements? Cash flow today matters more than historical accounts.

Future Contracts

Evidence of secured future work, upcoming contracts, or a solid order book demonstrates that revenue is incoming, justifying the need for the new asset.

Recent Trading Evidence

Up-to-date management accounts or recent bank statements showing a return to profitability can overwrite a poor set of filed year-end accounts.

Deposit Size

Putting down a larger deposit (e.g., 20% instead of 10%) immediately reduces the lender's risk and demonstrates your financial commitment to the asset.

Indicative Figures

Illustrative finance snapshot

When structuring bad credit asset finance or equipment finance despite losses, rates may be slightly higher and deposits may be required. Adjust the figures below to see an indicative example using an assumed 12.9% APR.

Asset cost£50,000

£10k£1m

Suggested Deposit10%

0%40%

Term48 months

12 months60 months

A lower deposit may be available. No minimum trading history is required as a blanket rule, and finance requests up to £1m may be considered.

Estimated Monthly Payment

£1,205.01

per month for 48 months

Amount financed£45,000.00

Assumed indicative APR12.9%

Important disclaimer: This snapshot uses 12.9% APR as an indicative starting assumption. Actual rate, deposit, term, fees, and approval depend entirely on an independent lender assessment of your specific circumstances. We cannot guarantee approval.

Overcoming barriers

Common objections answered

If your business is loss-making, you might assume other factors will completely block your application. We regularly place deals for businesses facing these specific challenges.

Bad Credit & CCJs

A satisfied CCJ or a historic missed payment is rarely a dealbreaker. Even active issues can be overcome if there is a clear explanation and the overall business model is viable.

New Business / No Accounts Yet

Start-ups naturally have no filed accounts. Lenders will base their decision on your opening balance sheet, director experience, and realistic cash flow projections.

HMRC Arrears

Owe money to HMRC? If you have agreed a Time To Pay (TTP) arrangement and can prove you are making the agreed payments, several specialist lenders will consider your application.

Asset Coverage

Assets commonly considered for loss-making businesses

Commercial Vehicles & Vans

HGVs & Trailers

Agricultural Machinery

Construction Plant

Manufacturing Plant

Printing Equipment

Catering Equipment

Medical & Dental Equipment

IT & Telecoms Hardware

Renewable Energy Installations

While we cover a wide range of assets, we cannot say every single asset will qualify. Hard assets with strong resale value are easiest to place.

How it works

A straightforward broker process

We organise the information, approach suitable lenders and explain each step before you proceed.

Candid Assessment

We have an open, confidential conversation about your losses, the asset you need, and your current cash flow. No judgment, just practical advice.

Soft Search

We approach the lenders most likely to accept your profile using a soft search, meaning no hard footprint is left on your credit file.

Review Options

We present any available rates, deposits and terms. As an independent broker, we explain the lender options and any commission we receive.

Formal Application

Once you are comfortable proceeding, we submit the formal application, handle the documentation and keep the process moving.

Enquire about Asset Finance for Loss-Making Businesses

Get your personalised quote

Send us your details and one of our advisers will call you back, usually within one business day. No obligation, no credit check.

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Speak directly to an adviser Monday–Friday, 9am–5:30pm.

01246 383500

Free call. No obligation.

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What our clients say

Verified reviews from business owners we have helped.

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Frequently asked questions

Straight answers about securing finance when making a loss.

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