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Asset finance for equipment and vehicles

Spread the cost of the equipment your business relies on, with the asset itself usually acting as security.

  • Free to use, no obligation
  • £5,000 to £2m+ for UK limited companies and LLPs
  • Matched to a broker who arranges asset finance
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Free to useNo fees for businesses, ever
About a minuteOne short form, plain English
Specialist brokersMatched to your type of finance
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What asset finance is

Asset finance helps a business acquire vehicles, machinery, technology and other equipment without paying the full price upfront. The main types are hire purchase, where you usually own the asset once the final payment is made, and leasing, where you pay to use the asset for an agreed period. Because the equipment itself usually acts as security, asset finance can be easier to arrange than other borrowing, particularly for assets that hold their value.

It suits companies of almost any kind that rely on equipment to trade, from construction firms and hauliers to manufacturers, clinics and farms. Spreading the cost keeps cash available for running the business, and repayments can often be matched to the useful life of the asset. Asset refinance can also release cash from equipment you already own outright.

What businesses use it for

Vehicles and fleets

Finance vans, cars, lorries, trailers or a whole fleet, with repayments spread over a term that reflects how long the vehicles are likely to be in service.

Plant and machinery

Acquire diggers, production lines, CNC machines and other heavy equipment without tying up the cash you need for materials, wages and day-to-day costs.

Technology and IT

Spread the cost of computers, servers, telephone systems or specialist hardware, which can make regular upgrades easier to plan for.

Refinancing assets you own

Release cash from equipment the business already owns outright by refinancing it, then repay over an agreed term while continuing to use it.

How it works

1Choose the asset
You pick the equipment and the supplier, new or used. The broker gathers details of the asset, its cost and your company, then looks for lenders who finance that type of equipment.
2Agree the structure
You choose between options such as hire purchase or a lease, often with a deposit or an initial rental. The term is usually set to match how long the asset will be useful to the business.
3The lender pays the supplier
Once the agreement is signed, the lender typically pays the supplier directly and you take delivery of the asset. You then make regular payments for the rest of the agreed term.

What lenders look at

Every lender has its own criteria, but these are the things they usually check.
Type, age and expected life of the asset
Whether the asset is new or used
Company trading history and accounts
Credit history of the business and its directors
Size of any deposit or initial rental

To use Loanleaf

  • UK limited company or LLP
  • Trading for 6 months or more
  • Annual revenue of £50,000+
  • Borrowing £5,000 or more
Check your options

Things to consider

Ownership

With hire purchase you usually own the asset after the final payment, sometimes after a small option-to-purchase fee. With a lease, the lender keeps ownership, and you may return, extend or upgrade at the end. Choose the structure that fits how you use the asset.

Tax and VAT treatment

Hire purchase and leasing are treated differently for VAT and for tax relief. With hire purchase, VAT is usually paid upfront, while lease rentals normally have VAT added to each payment. Your accountant can explain which suits your company.

Commitment and risk

Payments run for the full term even if you stop using the asset. If they are not made, the lender can recover the equipment, and some agreements also need a personal guarantee. Check the end-of-term terms and any balloon payment before you sign.

Asset finance: questions and answers

What is the difference between hire purchase and leasing?
With hire purchase you pay for the asset in instalments and usually own it once the final payment is made. With leasing you pay to use the asset for a set period, and the lender keeps ownership. Each has different accounting, tax and VAT treatment.
Can I finance used equipment?
Yes, many lenders finance used vehicles and machinery as well as new. They will look at the age, condition and expected remaining life of the asset, and some set limits on how old it can be at the end of the agreement.
Do I need a deposit?
Often, though not always. Many agreements start with a deposit or an initial rental, and with hire purchase the VAT is usually paid upfront. The amount depends on the lender, the asset and your company’s circumstances.
What is asset refinance?
Asset refinance lets a business raise cash against equipment it already owns. The lender buys or takes security over the asset, you receive a lump sum, and you repay over an agreed term while continuing to use the equipment.
What happens at the end of the agreement?
With hire purchase, ownership usually passes to you after the final payment. With a lease, you may be able to return the asset, extend the lease or upgrade to new equipment. The options are set out in the agreement.
How can Loanleaf help?
Loanleaf is an introduction service, not a lender or broker, and we don’t give advice. You answer one short form about your company and what you need, and we match you with a specialist finance broker who works with asset finance. It’s free to use and there’s no obligation to go ahead. The broker will explain any fees of their own.
Ready to compare your options?
One short form. A specialist broker calls you.
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