What is equipment finance and how does it work?

Equipment finance covers a range of funding options that help businesses acquire the physical kit they need — from CNC machines and tractors to kitchen equipment and commercial vehicles — without paying the full capital cost upfront. Common structures include hire purchase, finance leases and operating leases. Each option allocates ownership, tax treatment and monthly costs differently, so the right choice depends on the asset, your cashflow and business goals.

Fast Business Loans is an introducer: we gather a few details via a short enquiry (this is not an application) and match you with lenders or brokers who can advise on the best structure and provide quotes. If you want to proceed after a match, the lender/broker will carry out checks and handle the formal application.

Why UK businesses choose Fast Business Loans for equipment funding

• Save time — one short enquiry connects you with multiple suitable lenders and brokers.
• Sector expertise — our panel includes providers experienced across construction, hospitality, healthcare, agriculture, manufacturing and more.
• Fast responses — partners typically contact matched businesses quickly to discuss options.
• No obligation — getting matched and receiving quotes is free and without commitment.
• Confidential & secure — we only share your details with relevant partners and handle data carefully.

Want to check if you’re eligible? Free Eligibility Check — it takes less than two minutes.

Types of equipment finance we can connect you with

Hire Purchase (HP)

HP lets you hire the asset and own it after the final payment. Typical terms: 2–5 years for vehicles, 3–7 years for machinery. Pros: fixed payments, eventual ownership. Cons: deposit usually needed, assets recorded on balance sheet.

Finance Lease

A finance lease funds the asset for most of its useful life. You effectively pay to use it; ownership normally stays with the lessor. Pros: lower upfront cost than outright purchase; cons: no ownership at end unless there’s a purchase option.

Operating Lease / Rental

Operating leases are shorter and act like rental agreements — useful for rapidly depreciating kit or when you want to refresh equipment frequently. Pros: off-balance-sheet in some cases; cons: ongoing rental expense without ownership.

Hire Purchase with Balloon Payment

A lower monthly payment up front with a larger final payment (balloon) at the end. Useful when you expect to sell or refinance the asset later. Pros: improved cashflow during term; cons: final liability remains unless refinanced.

Equipment Refinance / Asset Refinance

Release cash tied up in existing equipment by refinancing. This can improve liquidity or consolidate debt. Pros: access capital without selling assets; cons: depends on lender appetite and remaining asset value.

For more detail on supplier options and lending structures, read our dedicated equipment finance guidance for businesses on our equipment finance pillar page.

Industries & equipment we help finance

Our panel supports a wide range of sectors. Examples include:

• Construction: excavators, dumpers, site equipment
• Manufacturing & engineering: CNC machines, presses, production lines
• Hospitality & catering: ovens, refrigeration, extraction systems
• Healthcare: imaging, diagnostic equipment, sterilisation kit
• Transport & logistics: vans, HGVs, trailers, fleet packages
• Agriculture: tractors, harvesters, loaders
• IT & telecoms: servers, networks, office systems

If your equipment isn’t listed above, tell us what you need — our partners fund a broad range of business assets. Get Quote Now

Typical eligibility criteria & documents lenders may request

Each lender has different rules, but common criteria include:

• UK-registered trading company (we do not arrange sole trader or profession-specific individual loans).
• Trading history — many lenders prefer at least 12 months’ trading; specialist lenders may consider newer businesses depending on strength of cashflow and contract evidence.
• Minimum finance amounts — our partners typically deal with transactions from around £10,000 upwards.
• Credit and affordability checks — performed by the lender at application stage.

Common documents requested:

• Latest 2–3 years’ business accounts (if available) or management accounts
• Recent business bank statements
• Supplier or sales invoices, quotes for the equipment
• Proof of identity and company documents

Submitting our enquiry does not trigger a credit search — lender credit checks only happen if you progress with a partner. Free Eligibility Check

How our matching process works

1. Short enquiry: You tell us about your business, the asset and the amount required. This is not an application — just information to match you.
2. Intelligent matching: We select lenders and brokers from our panel who specialise in your sector and asset type.
3. Partner contact: Matched partners will contact you to discuss options, typically by phone or email.
4. Compare & choose: Review quotes, ask questions, and progress with the partner that best fits your needs.

Ready to get matched? Get Started — Free Eligibility Check

What will equipment finance cost?

Costs vary by lender, asset, term, deposit and your business profile. Key factors affecting price:

• Asset value and life
• Term length and residual value
• Deposit amount
• Business credit profile and turnover

Indicative example (illustrative only):

• Asset cost: £50,000 | Deposit: 10% (£5,000) | Term: 5 years | Approx. monthly (HP): £800–£950
• Asset cost: £25,000 | No deposit (100% finance) | Term: 3 years | Approx. monthly (lease): £700–£900

These are illustrative estimates — actual quotes depend on lender terms and credit checks. All finance is subject to status and affordability checks by the lender. For tailored figures, Get Quote Now.

Comparing equipment finance to alternative funding

Other options to consider:

• Business loan: Good if you want ownership immediately and simpler accounting. Best for businesses that prefer a single unsecured/secured borrowing arrangement.
• Invoice finance: Unlocks cash from unpaid invoices — useful for working capital, not asset purchase.
• Refinance or sale & leaseback: Release equity from owned assets to boost liquidity.

A matched broker can help determine which route is most cost-effective for your situation. Free Eligibility Check

Real-world scenarios we support

Here are anonymised examples to show how businesses use equipment finance:

• Manufacturer upgrades — A Midlands-based manufacturer replaced worn CNC equipment via HP, preserving working capital and spreading the cost over 5 years.
• Restaurant refurbishment — A café owner financed a kitchen refit with a hire purchase plan; monthly costs matched seasonal cashflow.
• Medical practise refresh — A clinic leased diagnostic equipment on an operating lease, enabling upgrades at term-end.

Tell us about your project and we’ll match you with lenders who specialise in your sector. Get Quote Now

How to strengthen your equipment finance application

• Gather clear supplier quotes and invoices for the equipment.
• Prepare recent bank statements and management accounts.
• Be ready to explain how the asset will generate revenue or efficiency.
• Consider a sensible deposit to improve offers and reduce monthly costs.
• Check and correct any obvious errors on business credit files prior to application.

Need help preparing? Matched brokers often provide checklists and application support. Start your enquiry.

Frequently asked questions

Is Fast Business Loans a lender?

No. We are an introducer that connects businesses with vetted brokers and lenders. We do not provide lending directly and do not give regulated advice.

Will submitting an enquiry affect my credit score?

Submitting the Fast Business Loans enquiry does not trigger a credit search. Lenders may carry out credit and affordability checks only if you choose to proceed with their quote.

What’s the minimum finance amount you handle?

Our partners typically work with equipment finance from around £10,000 upwards.

How quickly will I receive quotes?

Matched lenders and brokers often contact businesses within hours during business days. Complex requests may take longer.

Do I have to proceed after receiving quotes?

No — there’s no obligation to accept any offer. You decide which quote (if any) you want to progress.

Start your equipment finance enquiry today

Ready to explore funding options for your next asset purchase? Complete our short enquiry — it takes under two minutes and is not an application. We’ll match you to lenders and brokers who can provide tailored, no-obligation quotes.

Get Started — Free Eligibility Check

Disclaimer: Fast Business Loans is an introducer and not a lender. We connect UK businesses with finance brokers and lenders who set their own terms. All finance is subject to status, terms and affordability checks by the lending partner. Our service is free for business owners; we may receive an introducer fee from partners when a business proceeds.