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Asset finance is the UK’s standard way to fund plant, machinery, vehicles, IT equipment and fit-out — spreading the cost over 1–7 years. The asset secures the facility, so rates are typically far lower than unsecured lending, and most asset finance now sits inside the British Business Bank Growth Guarantee Scheme for additional protection on bigger tickets.
A non-exhaustive snapshot of the most common asset finance use cases we see across UK SMEs in our broker panel.
New or used 5-axis CNC, sheet-metal lasers, robotic cells, MIG/TIG welding plant.
Vans, HGVs, plant trailers, refrigerated transport, taxi fleets.
Servers, network refresh, laptops, printers — spread over their useful life rather than capex.
Combi-ovens, walk-in fridges, dishwashers, espresso plant, EPOS / PDQ.
Bar back, booth seating, terrace covers, joinery, electrical — financed against the fit-out.
Release equity from kit you already own to fund growth or working capital.
There are dozens of UK business-funding products. Here’s when asset finance is the right one — and what to consider instead if not.
The asset is security, so rates are typically 5–15% APR vs 12–25% for unsecured.
Pay monthly from the income the asset generates, rather than draining your cash reserves.
Lease payments and HP interest are usually allowable costs against corporation tax.
Asset finance facilities of £25,001—£2m can sit inside the Growth Guarantee Scheme — same product, with the British Business Bank guarantee.
Closely-related UK SME funding products to consider alongside — or instead of — asset finance.
Plain-English answers to the questions UK SME owners ask us most often about asset finance.
Asset finance is a secured facility used to buy or refinance a physical business asset — plant, vehicles, machinery, IT, fit-out. The lender retains a charge over the asset until the facility is fully repaid. Common UK products are hire purchase (HP), finance lease, operating lease and refinance / sale-and-HP-back.
Hire purchase — you make monthly payments and own the asset outright at the end (typically for a nominal £1 / £100 final fee). Finance lease — you rent the asset over its useful life with a residual value to settle or roll at the end. HP suits things you want to own forever (CNC, fit-out). Lease suits things you replace on a cycle (IT, vehicles).
Up to £100,000 in 1–5 working days with most specialist UK lenders. £100k–£500k typically 5–10 working days. Above £500k or under the Growth Guarantee Scheme, allow 2–4 weeks for full underwriting.
Yes — the asset itself is the primary security, so trading history matters less than for unsecured lending. Specialist UK new-business asset-finance lenders write down to 6–12 months trading. A larger deposit (typically 20–30%) is standard for a true startup.
A business loan is a lump-sum cash advance you can use for anything — including buying an asset. Asset finance is purpose-built for the asset itself: the lender holds security over it, so the rate is lower, the term can match the asset’s useful life, and approval is usually faster. For buying kit, asset finance is almost always cheaper.
Yes. Asset refinance (also called sale-and-HP-back) lets you sell an asset you already own to a finance company and lease it back over a 1–5 year term — releasing the equity as cash. Common for funding growth without taking on unsecured debt.
Yes — the Growth Guarantee Scheme explicitly supports asset-finance variants for facilities of £25,001—£2m. The 70% British Business Bank guarantee sits behind the same HP or lease product, often improving the rate for borderline-credit cases.
Every page below feeds the same panel of British Business Bank-accredited GGS lenders. Pick the deep-dive that matches your question, or jump to grants and alternative funding routes.
Important information: The Business Hub is a credit broker, not a lender. We introduce UK businesses to a panel of lenders and finance providers. Business finance products for limited companies (including unsecured loans, merchant cash advances and Growth Guarantee Scheme facilities) are generally not regulated by the Financial Conduct Authority. Any rates or quotes shown are indicative, for information purposes only, and subject to status, lender criteria and separate terms & conditions. Personal Guarantees and Indemnities may be required — under the Growth Guarantee Scheme the borrower always remains 100% liable for the debt. We may receive a commission from lenders, which can vary depending on the lender, product or other permissible factors; the nature of any commission model will be confirmed before you proceed.
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