Are you looking for the best asset finance in the UK? Whether you’re a small business owner needing help with funding, or an individual investing in major items like cars and equipment, finding specialist financial assistance can be daunting.
But don’t worry – right here we’ll explore the leading providers available to UK customers today.
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18 best asset finance companies and lenders
| Asset finance lender | Minimum finance | Maximum finance | Finance terms |
|---|---|---|---|
365 Business Finance | £10,000 | £300,000 | 4 months – 18 months |
Allica Bank | £25,000 | £1,000,000 | Up to 7 years |
Barclays | £1,000 | N/A | 1 year – 12 years |
Bluestar Leasing | £1,000 | N/A | Up to 7 years |
Capify | £5,000 | £500,000 | 3 months – 18 months |
Cube Funder | £5,000 | £100,000 | 3 months – 1 year |
Fleximize Asset Finance | N/A | N/A | N/A |
Funding Circle Asset Finance | £10,000 | £250,000 | 6 months – 5 years |
Funding Xchange | £5,000 | £250,000 | 1 year – 5 years |
Lombard Business Finance | £5,000 | £250,000 | 12 months – 84 months |
Love Finance | £5,000 | £500,000 | 18 months – 5 years |
Nationwide Finance | £8,000 | £500,000 | 1 year – 5 years |
Nest Asset Finance | £10,000 | £5,000,000 | N/A |
Novuna | £10,000 | £500,000 | Up to 5 years |
Previse | £25,000 | £2,000,000 | 3 months – 9 months |
Swoop | £5,000 | £2,000,000 | 1 month – 7 years |
Tide | £500 | £5,000,000 | 1 month – 6 years |
YouLend | £3,000 | £1,000,000 | 3 months – 18 months |
What is asset finance?
Asset finance is a method of financing the purchase of assets. It’s basically an agreement between a lender and borrower in which the borrower pays off their loan with regular payments over an agreed period of time.
This type of finance can help businesses acquire equipment such as computers, software, vehicles, or machinery without having to make a large upfront payment.
This type of financing can also be used for business expansion, renovations, or other investments. Generally speaking, the lender is typically a financial institution such as a bank or leasing company that agrees to provide the loan and takes ownership of the asset being purchased in order to secure the loan. The borrower is then obligated to make regular payments until it fully pays off the loan.
How does asset finance work?
This type of lending works by allowing businesses to borrow money for the purchase of assets. The lender takes ownership of the asset and then lends it back to the borrower, who makes regular payments on the loan until it is paid off.
What are the benefits of asset finance?
Some of the main benefits of this form of loan include:
- Increased flexibility – This finance allows businesses to acquire assets without having to make large upfront payments. This makes it easier for companies to manage cash flow and invest in other areas of their operations
- Improved liquidity – It can help businesses free up working capital that would otherwise be tied up in purchasing assets
- Lower costs – This kind of loan is usually cheaper than traditional financing due to the lower interest rates and lowered risk associated with secured loans
- Tax benefits – Businesses may also be eligible for tax deductions on the interest paid on their loan
FAQ
There are several reasons a company might choose to go to an asset finance firm instead of a bank. Some firms specialise in this type of financing, and therefore can provide tailored solutions for businesses.
These companies may also be able to offer more competitive rates than those offered by banks or other financial institutions. Furthermore, these firms can often provide more flexible terms, such as the ability to pay off a loan early without penalty.
The cost of asset finance depends on several factors, such as the type of asset being financed and the terms of the loan. Generally speaking, however, it’s usually cheaper than traditional financing due to the lower interest rates associated with secured loans.
The lender may also charge additional fees for processing or other services. It’s important to research and compare different providers to ensure you get the best deal.
This type of loan is typically available to businesses of all sizes, ranging from sole traders and small businesses, to larger companies. However, eligibility can vary depending on the lender.
Generally speaking, businesses must meet certain criteria such as having a good credit rating and a positive cash flow. Some lenders may also require collateral such as property or other assets in order to secure the loan.
When choosing a lender of this type, it’s important to do your research. Compare different lenders and their offerings to find the best deal for your business. Consider factors such as interest rates, repayment terms, fees, customer service and any additional benefits that may be available.
You should also check whether the lender is regulated by a governing body or authorised by the Financial Conduct Authority (FCA). This will give you peace of mind that your funds are secure with a trusted provider.
Finally, always make sure to read through the loan agreement carefully and be aware of any hidden costs or fees before signing. Doing your due diligence can help ensure that you get the best possible deal for your business.
It is a type of business funding that allows companies to acquire or refinance equipment, vehicles, or machinery without paying the full cost upfront. Instead, the cost is spread over time through structured payments.
Providers offer funding solutions that enable businesses to lease, hire, or purchase essential equipment while managing cash flow effectively. They structure repayment terms based on a business’s financial situation and the asset’s value.
Hire purchase (HP) – Spread the cost of purchasing an asset over fixed payments, with ownership at the end.
Finance lease – The business leases the asset for an agreed period but does not own it.
Operating lease – A shorter-term lease where the asset is returned to the lender at the end of the term.
Asset refinancing – Release cash from assets already owned by using them as collateral.
Asset finance providers typically fund:
Vehicles (company cars, vans, HGVs)
Machinery and equipment
IT and office technology
Plant and construction equipment
Agricultural machinery
Renewable energy technology
Preserves cash flow – Avoids large upfront payments.
Flexible repayment terms – Tailored to suit business needs.
Tax benefits – Some finance options allow VAT and repayments to be deducted from taxable profits.
Access to the latest equipment – Leasing can provide regular upgrades.
Higher total cost – Paying in instalments can make the asset more expensive than an outright purchase.
Ownership restrictions – With leasing, the business never owns the asset.
Potential additional fees – Maintenance, end-of-lease charges, or early settlement fees may apply.
Most businesses, including sole traders, SMEs, and large enterprises, can apply, but approval depends on:
Business credit rating
Trading history and financial stability
Type of asset being financed
Lenders assess:
The financial health of the business.
The asset’s resale value (if using it as collateral).
The ability to meet repayment terms.
The length of time the business has been trading.
Rates vary depending on:
The lender.
The business’s creditworthiness.
The asset type and value.
The repayment term.
Some agreements require a deposit (typically 10–30% of the asset value), but others offer 100% financing with no upfront cost.
Yes, many providers finance used assets, though terms may vary based on the asset’s age and condition.
It depends on the finance type:
Hire purchase – You own the asset outright after the final payment.
Finance lease – You can continue leasing, upgrade, or return the asset.
Operating lease – The asset is returned to the provider.
Yes, asset refinancing allows businesses to unlock capital tied up in existing assets, using them as collateral for a loan.
Failure to meet repayments can result in:
Repossession of the asset.
Additional fees or penalties.
Damage to business credit ratings.
Consider:
Interest rates and repayment terms.
Whether they specialise in your industry.
Customer reviews and service reputation.
Additional fees and charges.