What is asset finance?

Asset finance is a set of funding solutions designed to help businesses obtain the equipment and assets they need without paying the full cost up front. Instead of taking a single lump-sum purchase, you use finance arranged against the asset — this spreads cost and often preserves working capital.

Common asset types include:

• Commercial vehicles and fleets (vans, HGVs)
• Plant and construction machinery
• Manufacturing and production equipment
• IT hardware, servers and telecoms
• Medical and dental equipment
• Office fit-outs and specialist trade tools

Asset finance differs from unsecured term loans because the asset typically provides the security for the finance — this can allow larger amounts and longer terms at competitive cost.

Who uses asset finance in the UK?

Asset finance is widely used across industries where equipment is essential to operations. Typical sectors include construction, manufacturing, transport and logistics, agriculture, hospitality, healthcare and technology. It’s particularly useful for growing SMEs that need to upgrade or expand without crippling cashflow.

If you operate as a limited company and are looking to fund an asset purchase or refinance, Fast Business Loans can connect you to brokers and lenders with relevant sector expertise.

Get a Free Eligibility Check — it takes under two minutes and does not affect your credit score.

How asset finance works

Most asset finance transactions follow these basic steps:

1. You decide the asset and budget (new or used).
2. You complete a short enquiry with details about your business and the asset.
3. We match you to specialist lenders or brokers who can provide quotes.
4. You receive proposals, compare terms and choose the best fit.
5. Once agreed, funding is completed and the asset is delivered.

Typical terms and features:

• Amounts commonly start at around £10,000 and can exceed £1m depending on asset and lender.
• Terms vary by product — hire purchase terms often 1–5 years; leases can run longer.
• VAT treatment: VAT is usually payable on purchase; many deals structure repayments to align with VAT timing.

Asset finance products Fast Business Loans can help you access

Hire Purchase (HP)

HP lets your business pay fixed monthly instalments and (usually) own the asset at the end after the final payment. Good for businesses that want ownership.

Finance Lease

Leases allow use of an asset for an agreed period while the lender retains ownership. At term end you typically return the asset or agree a residual purchase.

Operating Lease

Operating leases are effectively rental agreements — short-term and often used where you prefer not to take on long-term ownership.

Asset Refinancing / Refinance

Refinancing lets you unlock capital tied up in existing assets. It can improve cashflow, consolidate borrowing or release investment funds.

Balloon Payments & Residual Options

Many lenders offer lower monthly payments with a final balloon/residual payment — useful where cashflow is seasonal or you plan to sell/replace the asset.

Benefits and considerations for UK SMEs

Key benefits

• Preserve working capital — avoid large one‑off purchases.
• Tax and accounting benefits — many arrangements treat payments as operating costs (seek accountant guidance).
• Access to newer/better equipment to boost productivity.
• Flexible structures tailored to asset life and business cashflow.

Considerations

• Interest and fees vary — shop around and compare APR-equivalent costs.
• Lenders assess credit and security; some require deposits or guarantees.
• Used assets may attract different rates and maximum terms depending on age and condition.

Ready to compare options? Start Your Free Eligibility Check and receive matched quotes from brokers and lenders.

Eligibility snapshot & typical criteria

While lender criteria vary, common expectations include:

• Limited company trading history (often 6+ months; stronger lenders prefer 12+ months)
• Minimum turnover thresholds — many lenders consider businesses with sustainable revenue streams
• Asset type, age and value — newer assets typically attract better terms
• Directors’ IDs and proof of address; some lenders request accounts or management accounts for larger deals

We’ll only share your details with lenders who can realistically help — and submitting an enquiry does not perform a hard credit search.

What you’ll need for a fast eligibility check

To speed up matching, have this information ready when you complete the enquiry form:

• Company name and registration number
• Business turnover and trading history
• Type of asset (make/model if known), new or used, approximate value
• Approximate deposit or trade-in value (if any)
• Contact details for a decision-maker

Complete our simple form in under two minutes: Get Quote Now. Remember — the form is an enquiry only, not an application.

How Fast Business Loans matches you with the right asset finance partner

Our process is designed to match your brief to the most relevant lender or broker quickly:

1. Short enquiry: you tell us asset type and business basics.
2. Smart matching: we compare your request to our panel specialising by sector, asset and deal size.
3. Introductions: selected lenders/brokers contact you directly with quotes and next steps.
4. Support: we follow up to ensure you’ve received responses and can compare offers easily.

Start with a free, no-obligation Free Eligibility Check — it’s quick and won’t affect your credit file.

Cost factors & illustrative scenarios

Asset finance pricing depends on: asset value & age, term length, deposit, credit profile and product type. Example (illustrative only):

These examples are illustrative — actual quotes will vary. For tailored rates, Get a No-Obligation Quote.

Asset finance vs other funding options

When deciding, compare asset finance to alternatives:

• Unsecured business loan — no asset security, but higher cost and typically smaller limits.
• Invoice finance — unlocks working capital tied to invoices, not suitable for asset purchases.
• Hire purchase/lease (asset finance) — aligns payments with asset life and potential tax treatments.

If your need is to acquire or refinance a specific item of equipment, asset finance is often the most efficient solution.

Case study snapshots

Farm machinery upgrade

A regional contractor needed a £65,000 combine harvester. Fast Business Loans matched the business with a broker specialising in agricultural asset finance — a finance lease was arranged within days, preserving cash for seasonal costs.

IT infrastructure for a growing office

A limited company replacing servers (£35k) used asset finance hire purchase to spread cost and claim capital allowances where applicable. Multiple lender quotes allowed the client to pick a competitive fixed monthly payment.

Fleet expansion for a courier

A courier business added three vans (£75k total) using a combination of hire purchase and balloon options to manage seasonal cashflow — matched quickly to a specialist fleet funder.

Frequently asked questions

Will checking eligibility affect my credit score?

No. Submitting an enquiry via Fast Business Loans does not perform a hard credit search. Lenders may perform hard checks only with your consent when you progress a specific application.

Do I need a deposit?

Some lenders require a deposit or trade-in; others offer low or zero-deposit deals depending on asset and credit. It varies — we’ll match you to lenders who can meet your circumstances.

Can used equipment be financed?

Yes. Many lenders will consider used machinery and vehicles, though terms depend on asset age, condition and marketability.

What is the minimum deal size?

We typically introduce businesses seeking finance from around £10,000 and upwards. For larger, complex funding needs we’ll direct you to specialist partners.

Next steps — get matched to asset finance specialists

Fast Business Loans is an introducer, not a lender. We do not provide financial advice. Our role is to find the lenders and brokers most likely to help you secure the right asset finance solution quickly and without obligation. Submitting an enquiry is not an application — it simply lets us match you to the right partners.

Ready to compare real rates and terms? Complete a short form now: Start Your Free Eligibility Check. It takes less than two minutes and won’t affect your credit score.

Related resource: Learn more about specialist equipment and machinery funding on our in-depth asset finance guide: asset finance.

Key compliance note: We aim to be clear, fair and not misleading. Fast Business Loans introduces you to third‑party lenders and brokers. Eligibility, terms and pricing are determined by those lenders; seek independent accounting or tax advice if needed before committing to finance.