What is equipment finance and how does it work?

Equipment finance is any funding used to acquire business assets — from CNC machines and delivery vans to catering kit and medical scanners. Common forms include hire purchase, finance leases, operating leases and asset refinance. These products let businesses access equipment quickly without large upfront capital outlay, preserve working capital and match repayments to asset life.

Fast Business Loans does not provide finance. Instead, we act as an introducer: you complete a short enquiry, we match your request with lenders and brokers who could fund the deal, and those partners contact you with options. Any formal credit checks or applications are carried out only by the lender or broker, and only with your consent.

Free Eligibility Check — take two minutes to submit details and we’ll match you to appropriate specialists.

Why UK companies use equipment finance

Businesses choose equipment finance for many practical reasons:

• Preserve cashflow — avoid large capital payments and keep cash available for operations.
• Manage costs — predictable repayments make budgeting easier.
• Access latest technology — upgrade with manageable outlays rather than waiting to buy outright.
• Tax and accounting benefits — different finance types have different tax treatments; speak to your accountant.
• Scale quickly — expand capacity by financing multiple assets at once.

Common sectors that use equipment finance include manufacturing, hospitality, healthcare, logistics, agriculture and construction. If you’re buying equipment valued from £10,000 upwards, our panel can help find suitable partners.

Equipment finance options on our lender panel

Hire Purchase

Hire Purchase (HP) lets you pay for an asset over fixed monthly instalments. The lender owns the equipment until the final payment, when ownership transfers to you. HP is straightforward and widely used for machinery and vehicles.

Finance lease & operating lease

With a finance lease you effectively hire the asset for most of its useful life; the finance provider retains ownership. Operating leases are more like long-term rentals where the asset may be returned at contract end. Leasing can be attractive for tech that becomes outdated quickly or where you prefer off-balance-sheet treatment (subject to accounting rules).

Asset refinance (release equity)

If you already own equipment, asset refinance can release capital tied up in those assets. It can strengthen cashflow or help fund further growth without selling core assets.

Specialist & green equipment finance

We also connect businesses to specialist lenders for industry-specific kit and to green finance providers for energy-saving equipment (EV chargers, solar PV, heat pumps). Specialist lenders may offer flexible approvals for refurbished or niche assets.

Note: exact eligibility, term and rate are set by the broker or lender after assessing your business and the asset. For more detail on equipment lending types refer to our equipment finance resources on equipment finance.

Get Quote Now — one enquiry, multiple equipment finance specialists.

Our 4-step matching process

1. Quick enquiry: You tell us a few details about your company and the equipment — it takes under 2 minutes.
2. We match: Our system and team select lenders and brokers from our panel who specialise in your asset type and sector.
3. Partner contact: Matched brokers/lenders contact you directly to discuss options and request documents if appropriate.
4. Compare & decide: Review proposals, ask questions and pick the best partner. There’s no obligation to proceed.

We aim to deliver relevant matches within hours during business days. Remember: Fast Business Loans introduces you — brokers/lenders handle the formal application and funding.

Free Eligibility Check — no-obligation, no initial credit search.

Which equipment can be financed?

Most commercial assets used for business purposes can be financed. Typical categories include:

• Manufacturing machinery and tooling (CNC, presses)
• Catering, hospitality and kitchen equipment
• IT hardware, servers and office technology
• Medical and care equipment
• Agricultural machinery and plant
• Commercial vehicles and specialist transport
• Renewable energy installations (solar, EV chargers)

New and used equipment are usually eligible. For specialist or niche assets, we match you with lenders experienced in valuing and funding that asset type.

Eligibility snapshot & what lenders consider

Lender criteria vary, but common factors include:

• Trading history and business structure — limited companies and established SMEs are commonly accepted.
• Annual turnover and profitability — helps determine funding size and terms.
• Credit profile — director and company credit history may be reviewed.
• Asset type, age and value — lenders assess expected lifespan and residual value.
• Deposit or deposit equivalent — some deals require an initial payment.

Exact criteria differ between lenders. When you submit your enquiry, matched partners will explain their specific requirements before any formal application.

Equipment finance costs & repayments explained

Costs vary by product, lender and business risk. Key elements to understand:

• Interest or finance charge — fixed or variable depending on product.
• Term length — commonly from 2 to 7 years but can be longer for high-value plant.
• Balloon or residual payments — some agreements include a final larger payment.
• Fees — arrangement, documentation or valuation fees may apply.
• Early settlement — often possible but may include fees; check terms.

Example scenario: hire purchase for a £100,000 CNC machine over 5 years with a representative finance rate could produce predictable monthly repayments; exact figures will depend on lender pricing and your credit assessment.

Check Your Equipment Finance Options — Free, No Obligation

Fast Business Loans vs going direct to lenders

Working via Fast Business Loans can save time and increase the chance of being matched to a lender that understands your sector:

• Time saved — we shortlist suitable partners rather than you approaching multiple lenders.
• Sector expertise — matched brokers/lenders often specialise in specific equipment types.
• Soft approach — your initial enquiry is treated as a soft search; formal credit checks only occur later with consent.
• Compare options — receive multiple proposals to pick the best fit.

We only share your details with vetted partners who can realistically help — your data isn’t broadcast to irrelevant lenders.

Success stories & use cases

Below are anonymised examples of matches made via our service:

• Manufacturing firm — funded £250k for two new CNC units via hire purchase; matched with a specialist asset lender and completed within three weeks.
• Hospitality group — financed a kitchen refit and catering kit across three sites through an operating lease that preserved cashflow.
• Renewables installer — secured green equipment finance for EV charger roll-out, taking advantage of specialist lender terms.

Outcomes vary by business; these examples show the type of matches our platform can facilitate.

Practical tips before you apply

Be prepared to speed up the process:

• Gather supplier quote(s) and photos/specs of the equipment.
• Have recent management accounts and business bank statements ready.
• Understand whether you prefer ownership at the end (HP) or returning the asset (lease).
• Talk to your accountant about tax/insurance implications before agreeing.
• Plan installation and delivery timelines to align with funding drawdown.

Frequently asked questions

Is there a minimum or maximum equipment value?

Our partners typically consider equipment funding from around £10,000 upwards. Maximums depend on the lender and asset — some fund projects of several million.

Will submitting my enquiry affect my credit score?

No. Your initial enquiry via Fast Business Loans is treated as a soft search. Lenders or brokers will only carry out formal credit checks with your consent when you proceed.

Can new or growing companies apply?

Yes. Some specialist lenders and brokers will consider newer businesses, often requesting management accounts, forecasts and director details. Matching helps identify suitable partners quickly.

How long does approval take?

Simple equipment deals may be approved within 24–72 hours once required documentation is provided. Complex or high-value funding can take longer for valuations and underwriting.

Can I settle my finance early?

Many lenders permit early settlement, but terms and fees vary. Your broker will explain any early repayment charges before you sign.

What documents will lenders typically ask for?

Common items include management accounts, business bank statements, supplier quotation, proof of identity for directors and asset details. Exact requirements vary by partner.

Ready to explore tailored equipment finance options?

If your company needs equipment funding of £10,000 or more, start with a short enquiry and we’ll match you to the most relevant lenders and brokers. Our service is free to use and there’s no obligation to proceed once matched.

Start Your Free Equipment Finance Enquiry — Get Quote Now

Fast Business Loans is an introducer, not a lender. We do not provide financial advice. Any finance decision is made between you and the lender or broker you choose. Submitting an enquiry does not trigger a formal credit search.