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Asset Finance

Compare asset finance for your business needs

  • Compare a range of asset finance deals through our partner Think Business

  • Upgrade your equipment without needing a lump-sum payment upfront

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MoneySuperMarket is a credit broker not a lender. You must be 18 or over and a UK resident.

What is asset finance?

Asset financing is a way for a business to raise funds to buy or lease machinery or equipment. It can also be used to provide a cashflow injection, without significant upfront costs.

The assets are used as security in case the borrower can’t meet repayments.

Once asset finance is in place, the loan is paid back to the lender in regular instalments over a set period of time.

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What are the different types of asset finance?

Asset finance can be split into a few different categories, including:

  • 1

    Hire purchase

    HP contracts give you immediate access to assets that you’ll own outright after completing a series of payments. You pay a deposit and fixed monthly instalments for the agreed term. Agreements generally last one-six years. 

  • 2

    Equipment leasing

    Involves the lender buying assets, such as agricultural or haulage equipment, and leasing them to you for a fixed monthly sum. You can therefore access the assets without visibly borrowing money or using up capital.

  • 3

    Asset refinancing

    Aimed at businesses that have invested in equipment and need to release some capital tied up in those assets. The lender buys the equipment and leases it back to you over a set period, during which you make regular payments.

Can a small business or start-up get an asset finance loan?

Small businesses and start-ups may be able to access asset finance loans, but approval can depend on factors such as their existing assets, accounts and credit ratings.

Given start-ups often don’t have a business track record, a start-up loan might be a better option to get initial funding.

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What can I buy with an asset finance loan?

  • Equipment

    Purchasing machinery, tools or specialist equipment necessary for business operations

  • Vehicles

    Acquiring company vehicles, such as company cars, delivery trucks, vans or other transport assets

  • Technology

    Investing in computers, servers, software, or other technological infrastructure to enhance efficiency

  • Furniture and fixtures

    Obtaining office furniture, fixtures, or other essential items for a business workspace

  • Buildings

    Upgrading commercial property, such as office space, warehouses, or retail locations

  • Cash injections

    Using existing assets to help boost cashflow to cover overheads such as staff payroll and office rental

What are the pros and cons of equipment finance?

  • Tick

    Advantages

    • Allows you to get and use essential equipment and other assets your business needs without needing to make a lump-sum payment upfront

    • Interest rates are often fixed, which means you’ll know how much you’ll be spending over the next few years, making it easier to plan ahead

    • Asset finance offers flexible repayment options, including tailored schedules that align with the business's cashflow to ease financial strain 

  • Cross

    Disadvantages

    • Asset financing is generally more expensive than buying an asset outright, which means it’s worth making sure you aren’t overpaying

    • The asset may depreciate faster than the repayment schedule, potentially leaving it worth less than the outstanding loan amount

    • Asset finance often requires the asset itself as security, posing a risk of repossession and halting business operation in case of payment default

Can I get asset finance with bad credit?

You may still be able to get asset finance with bad credit, as long as you have a solid business plan and the lender is confident your company will be able to keep up with payments.

However, you might find that a poor credit rating means that you cannot borrow as much and that interest rates will be higher.

There are also specialist lenders who provide bad credit business loans.

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Compare asset finance with MoneySuperMarket

We’ve partnered with funding specialists to help provide companies with asset finance and other types of business lending. Here's how to get started...

  • Tell us what you need

    Let us know a few details such as how much you want to borrow, for what purpose and how long your firm has been trading

  • We’ll compare deals

    We’ll sift through our panel of leading lenders to show you indicative deals in just a few minutes along with any key features

  • Click through to apply

    Once you see a deal that might be suitable to your firm, we’ll connect you with the lender and you can make a firm application

Interest rates for asset finance in the UK will vary based on factors such as the type of asset and its use, the lender’s view of risk and your company’s credit rating.

Securing a lower rate often depends on a strong balance sheet, business plan and credit profile. It's always advisable to compare offers from different lenders for the best terms.

Yes, in a worse case scenario when you cannot meet your payment requirements, then assets funded through asset finance can be repossessed or taken back if they are leased. This can also make future borrowing harder for the business. 

Your business will need to be established in the UK to be eligible for an asset finance loan. It can also be helpful if it has a proven track record of trading.

You can then compare options with MoneySuperMarket’s partner Funding Xchange to see what deals might be available to you. 

The amount you can borrow through asset finance depends upon various factors concerning your business.

These include the equipment and machinery you need, your company’s balance sheet and the potential lender’s view of your ability to meet repayments. 

While business asset finance falls outside the direct regulation of the Financial Conduct Authority (FCA), certain regulated activities within the financial services sector, such as car hire purchase, are overseen by the FCA.

Many lenders in this domain are both authorised and regulated by the FCA. The Finance and Leasing Association (FLA), representing the UK's asset, consumer, and motor finance sectors, also issues recommended practice statements concerning leasing and asset finance.

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