Equipment Finance for UK Businesses: Options, Eligibility & Fast Quotes

Summary: Equipment finance lets businesses spread the cost of machinery, vehicles, IT, catering or medical kit over time so you can preserve cash flow while getting the assets you need. Fast Business Loans doesn’t lend — we match UK companies (loans from around £10,000+) with the best brokers and lenders for hire purchase, leasing, refinance and short-term rental options. Complete a short, no-obligation enquiry and get matched to providers who can give tailored quotes quickly. Free Eligibility Check

What is equipment finance?

Equipment finance is any funding arrangement that helps a business acquire or upgrade physical assets — from construction machinery and production lines to catering equipment, medical scanners and IT hardware. Instead of paying the full price up front, your business agrees regular repayments over a fixed term while using the asset for operations.

Common uses include: replacing end-of-life machinery, scaling capacity, funding fleet upgrades, buying specialist medical or catering kit and supporting seasonal production peaks. Fast Business Loans acts as an introducer: we connect your business to lenders and brokers who specialise in equipment deals — we do not provide the lending ourselves.

How equipment finance works

Typical steps:

• Identify the asset and obtain a supplier’s quote (or provide details of an existing asset).
• Complete a short enquiry so we can match you with appropriate lenders/brokers.
• Matched partners review the business and asset details and provide tailored proposals.
• Once you choose an offer the lender arranges paperwork, pays the supplier (or refinances the asset) and you begin repayments.

Ready for tailored quotes? Free Eligibility Check — the enquiry is not an application and does not affect your credit file.

Equipment finance options we can introduce

Different agreement types suit different goals — cash preservation, ownership, tax treatment or flexibility. We’ll match you to brokers/lenders who specialise in each option.

Hire Purchase (HP)

• Deposit: often 0–30%
• Ownership: transfers after final payment
• Best for: businesses that want ownership at term end
• Consideration: asset on-balance-sheet, VAT treatment depends on supplier/lender

Finance Lease

• Deposit: may be lower than HP
• Ownership: usually retained by lessor; option to buy at end
• Best for: long-term use with flexibility on replacement
• Consideration: often off-balance-sheet (depending on accounting standards and deal)

Operating Lease / Contract Hire

• Deposit: sometimes required
• Ownership: not transferred; you return asset at term
• Best for: short-term use, regularly upgrading kit
• Consideration: predictable monthly costs, possible maintenance included

Asset Refinance / Sale & Leaseback

• Turn owned equipment into working capital by selling to a funder and leasing it back
• Best for: improving cash flow without losing use of the equipment

Short-term rental / hire

• Flexible weekly/monthly arrangements for projects or seasonal spikes

Quick comparison (at-a-glance)

To compare deals quickly and get matched to the right specialist, start a Free Eligibility Check.

Sector-specific examples

Examples of typical projects and budget ranges (illustrative):

• Construction: mini-excavators or mixers — £15k–£150k.
• Manufacturing: CNC machines or presses — £25k–£500k+.
• Healthcare: diagnostic scanners or dental chairs — £20k–£300k.
• Hospitality & Catering: ovens, refrigeration, fit-out kit — £10k–£120k.
• IT & Telecoms: servers, workstations, POS systems — £10k–£100k.

Many lenders can accept used or refurbished equipment, subject to age and condition.

What lenders & brokers look at

Underwriting varies by provider, but key factors commonly include:

• Trading history and company structure (limited companies commonly supported).
• Annual turnover and profitability — lenders assess affordability.
• Credit profile — personal/business credit history may be reviewed for directors.
• Asset type, age, condition and expected resale value.
• Deposit amount and desired term.

Documentation typically requested: supplier quote, recent business bank statements, management accounts or statutory accounts, proof of identity for directors, and asset photos/specs. Completing our short enquiry helps us match you to partners who require only what’s necessary for an initial decision.

New businesses & adverse credit

Start-ups or businesses with adverse credit may still be able to access specialist asset finance through tailored underwriting, higher deposits, guarantors or shorter terms. Fast Business Loans will try to match you with brokers who work in these scenarios, but there are no guaranteed outcomes.

Costs, rates & repayment structures

Rates depend on: asset class, loan-to-value, term, credit strength, and whether the agreement is secured against the asset. Typical illustrations (indicative only):

• Competitive finance/leasing rates for strong borrowers: from mid-single-digit APRs for low-risk used assets to higher rates depending on circumstances.
• Specialist or higher-risk cases: rates increase to reflect risk and shorter terms.

Other costs to consider: arrangement fees, documentation fees, option-to-purchase fees (for leases), maintenance packages and late-payment penalties. Compare the total cost of ownership, not just the headline monthly payment.

Illustrative example (for guidance only):

Examples are illustrative—actual quotes come after lender assessment. Request personalised illustrations through a Free Eligibility Check.

Tax & accounting considerations

VAT, capital allowances and accounting treatment vary by agreement. For example, hire purchase commonly treats the asset as owned (capital allowances may apply), while operating leases often treat costs as operational expenses. Always consult your accountant to confirm the treatment for your business and to optimise cashflow and tax outcomes.

How Fast Business Loans supports you

Our streamlined four-step process:

1. Complete a quick online enquiry (takes under 2 minutes).
2. We match you to lenders and brokers suited to your sector and asset type.
3. Partners contact you with options and personalised quotes.
4. You compare offers and proceed directly with the lender/broker you choose.

We work with a wide panel of UK finance partners experienced across industries — our matching aims to reduce wasted time and improve the quality of responses you receive. We handle your data securely and only share it with partners relevant to your enquiry. Start the process here: Get Quote Now.

What to prepare before you apply

• Supplier quote or asset specification (price, serial/model, expected delivery).
• Recent business bank statements (usually 3 months).
• Latest management accounts or statutory accounts.
• Details of any existing finance arrangements.
• Estimated deposit amount and preferred term.

Pro tip: a realistic business case showing how the asset will improve revenue or efficiency helps speed decisions.

Frequently asked questions

Can I finance used equipment?

Yes. Many lenders accept used or refurbished assets subject to age, condition and resale value checks. Provide photos and detailed supplier information for the best response.

What’s the minimum or maximum amount I can borrow?

Our partners typically handle deals from around £10,000 upwards. Upper limits vary widely; some brokers support multi‑hundred‑thousand or million‑pound arrangements depending on asset and borrower strength.

How fast can funding complete?

Initial lender responses often arrive within hours; full funding timelines vary by lender and asset complexity but many transactions complete within 7–21 working days once documentation is agreed.

Will my enquiry affect my credit score?

No — submitting our enquiry does not trigger a credit search. Lenders or brokers only perform credit checks once you proceed and consent to them.

Do I need a deposit?

Some agreements require a deposit, while others can offer 100% finance depending on asset type and credit. Expect lower rates with a deposit.

What happens if equipment becomes obsolete?

Choices include shorter lease terms to allow upgrades, purchase options, or maintenance & upgrade clauses. Discuss lifecycle plans with your broker before signing.

Get started today

If you need new or upgraded equipment and want fast, relevant quotes from lenders and brokers who specialise in your sector, complete our short enquiry now — it’s quick, free and non-binding. We’ll match you to suitable partners so you can compare offers and decide what’s best for your business: Free Eligibility Check.

Fast Business Loans is an introducer of finance and does not lend money or provide regulated financial advice. Completing our enquiry is not an application — it helps us match your business to the most appropriate lenders and brokers. Actual terms depend on lender assessment.

equipment finance

1) Is Fast Business Loans a lender and does it cost to use?
No—Fast Business Loans is an introducer that matches UK businesses with trusted lenders and brokers, and our service is free with no obligation to proceed.

2) Will completing your enquiry affect my credit score?
No, our quick enquiry is not an application and does not trigger a credit search; checks only occur if you proceed with a lender and give consent.

3) What is equipment finance and how does it work?
Equipment finance lets your business spread the cost of machinery, vehicles or IT over a fixed term— a lender pays the supplier (or refinances an asset) and you make agreed repayments.

4) What’s the difference between hire purchase, finance lease and operating lease?
Hire purchase ends with ownership after the final payment, a finance lease provides long‑term use with a potential purchase option, and an operating lease/contract hire is for use only with the asset returned at term end.

5) How quickly can I get a decision and funding?
Initial responses often arrive within hours, with many equipment finance deals completing in 7–21 working days once documentation is agreed.

6) What is the minimum and maximum amount I can borrow for equipment?
Our partners typically fund from around £10,000 upwards, with upper limits reaching hundreds of thousands or even millions depending on the asset and your credit profile.

7) Do I need a deposit or can I get 100% equipment finance?
Some agreements require a deposit while others can offer up to 100% finance, though a deposit can improve approval chances and pricing.

8) What rates and fees should I expect for equipment finance in the UK?
Rates vary by asset type, term, loan‑to‑value and credit strength—from competitive mid‑single‑digit APRs for low‑risk cases to higher rates for specialist scenarios—plus possible arrangement, documentation and option‑to‑purchase fees.

9) Can start-ups or businesses with adverse credit get equipment finance?
Yes, specialist lenders may consider start-ups or adverse credit using tailored underwriting, higher deposits, guarantors or shorter terms, though approval isn’t guaranteed.

10) Can I refinance equipment I already own (sale-and-leaseback)?
Yes—asset refinance or sale‑and‑leaseback can unlock working capital while you keep using the equipment, subject to asset age, condition and lender assessment.