/ Corporate funding guide
Asset finance for UK companies
Asset finance is the least disruptive way to fund equipment, because the asset largely secures itself. That changes what lenders ask for, how quickly a deal completes and how much of your other borrowing capacity it consumes.
Guide reviewed September 2026 · Business-Utility.com
Hire purchase, leasing and refinance
Three structures cover most transactions, and the right one depends on whether you want to own the asset at the end, how long you will use it, and how you want the cost to appear in your accounts.
- Hire purchase — instalments over a term, ownership passes to you at the end
- Finance lease — you use the asset for most of its working life and the lender retains ownership
- Operating lease — shorter term, asset returned at the end, useful where technology dates quickly
- Refinance or sale and leaseback — release cash from assets you already own and keep using them
What can be funded
Lenders look for assets that are identifiable, durable and resaleable. Hard assets attract the keenest terms; specialist or soft assets are still fundable but on shorter terms and tighter pricing.
- Commercial vehicles, HGVs, plant and construction equipment
- Manufacturing and processing machinery
- Agricultural equipment
- Materials handling, catering and refrigeration equipment
- Technology and fit-out, usually on shorter terms
How a deal is priced
Pricing reflects the strength of the borrower, the resale value of the asset, the deposit and the term. Compare offers on the total amount payable and the balloon or final payment, not the monthly figure alone — a low monthly cost with a large final payment can be the more expensive deal.
- Deposit or initial rental, often a set percentage of cost
- Term, typically aligned to the asset's expected working life
- Balloon or final payment where one applies
- Documentation and option-to-purchase fees
Security, guarantees and the questions to ask
The asset itself is the primary security, but lenders may also seek a debenture or personal guarantees from directors, particularly for younger companies. Ask what security is being taken, whether guarantees are capped, and what happens if you want to settle early.
- Is a personal guarantee required, and is it capped?
- What is the early settlement position?
- Are there restrictions on moving or modifying the asset?
- Who insures it, and to what standard?
What to prepare before approaching lenders
A complete pack shortens the process considerably. Assemble the documents once and use them for every approach so offers are directly comparable.
- Latest filed accounts and up-to-date management figures
- Recent business bank statements
- Schedule of existing facilities and their terms
- Supplier invoice, specification or valuation for the asset
- A short note on how the asset earns or saves money
Frequently asked questions
- What is asset finance?
- Asset finance funds equipment, vehicles, plant or machinery against the value of the asset itself, spreading the cost over its working life instead of paying up front.
- What is the difference between hire purchase and leasing?
- Under hire purchase you pay instalments and own the asset at the end. Under a lease you pay for use of the asset over a term and hand it back, extend, or in some structures buy it, depending on the agreement.
- Can I raise cash against equipment I already own?
- Yes. Refinancing, sometimes called sale and leaseback, releases capital tied up in assets you already own while you continue using them.
- What do lenders want to see?
- Typically filed accounts or management figures, recent bank statements, details of existing facilities, and a supplier invoice or valuation for the asset being funded.
Put your requirement to the funding market
Tell us the asset, the amount and the timescale. We tender the requirement across our funding panel and come back with the structures and terms available to you.
Discuss a funding requirement