Asset finance lets a UK business spread the cost of equipment, vehicles and machinery over an agreed term, with the asset itself as the lender’s security.
Finance Assets arranges asset finance for specific equipment and specific sectors, through Bolton Business Finance Ltd and a panel of 135+ lenders. Choose your equipment or your sector below to see how lenders fund it, what it is likely to cost and what they will ask for. We work UK-wide, including London, and lend to businesses only.
Written by Marcus Wright, founder of Bolton Business Finance Ltd, in financial services since 2008 and a commercial finance broker since 2019. Last reviewed October 2026.
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The short version
- Asset finance spreads the cost of business equipment, vehicles and machinery over 2 to 7 years, so cash stays in the business.
- The main types are hire purchase, finance lease, operating lease, contract hire and asset refinance.
- Lenders fund new and used assets, and can release cash from assets a business already owns.
- Finance Assets arranges asset finance for limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000.
| Item | Detail |
|---|---|
| What it pays for | Machinery, vehicles, trailers, plant, catering and IT equipment, and specialist assets such as aircraft and vessels |
| Terms | Usually 2 to 5 years, and up to 7 years for new, high-value equipment |
| Paid upfront | Hire purchase: often a 10% deposit plus VAT. Leases: usually 1 to 3 rentals in advance |
| New or used | Both, from dealers and, with some lenders, auctions and private sellers |
| Ownership | Hire purchase ends with you owning the asset. With a lease, the lender keeps ownership |
| Who we help | Limited companies and LLPs, plus sole traders and partnerships on business agreements over £25,000 |
What is asset finance?
Asset finance is a way for a business to get the use of equipment now and pay for it in monthly instalments. The lender buys the asset from the supplier, or lends against one the business already owns, and takes the asset as security. Because the loan is secured on something with a resale value, asset finance is often easier to arrange than an unsecured business loan.
Some agreements end with the business owning the asset, and others are rentals where the lender keeps ownership. Which suits you depends on how long you will keep the asset, how much you want to pay upfront and how you want to treat VAT and tax.
Hard asset finance and soft asset finance
Hard assets, such as lorries, trailers, plant and machinery, keep a resale value, so lenders can recover their money by selling them. Soft assets, such as software, signage, tills and office fit-out, have little resale value. Hard asset finance is easier to arrange and usually cheaper. Soft asset finance is still widely available, but relies more on the strength of the business and is often arranged by specialist lenders or alongside hard assets.
Asset finance by equipment
Each equipment guide covers the assets lenders will fund, how hire purchase and leasing compare for that equipment, a worked example of the monthly cost, and the questions buyers ask most.
Manufacturing and engineering
Machine tools, cutting, fabrication, plastics and production lines. See the full manufacturing equipment finance hub, or go straight to a guide:
- Milling machine finance
- Laser cutting machine finance
- Injection moulding machine finance
- Lathe finance
- Welding machine finance
- Production line and automation finance
- Packaging machinery finance
- Woodworking machinery finance
Transport and haulage
Trailers, materials handling, rail, sea and air. See the full transport and haulage finance hub, or go straight to a guide:
- HGV and artic trailer finance
- Forklift truck finance
- Pallet racking finance
- Commercial vessel finance
- Rolling stock finance
- Aircraft finance and aircraft engine finance
Food, drink and catering
Commercial kitchens, refrigeration, brewing and food production. See the full food, drink and catering finance hub, or go straight to a guide:
- Catering equipment finance
- Commercial refrigeration finance
- Brewery and drinks equipment finance
- Food manufacturing equipment finance
- Vending machine finance
Business and site equipment
Office and IT, retail and payments, site equipment, waste containers and workshop equipment. See the full business and site equipment finance hub, or go straight to a guide:
- IT equipment finance, audio-visual equipment finance and print and imaging equipment finance
- Point of sale finance and office furniture and fit-out finance
- Tractor and farm machinery finance, telehandler finance, portable cabin finance and site accommodation finance
- Waste skip finance and wheelie bin finance
- Laundry equipment finance, car wash equipment finance and body shop equipment finance
- Pay and display machine finance, holiday park caravan and lodge finance and satellite finance
Asset finance by sector
Each sector guide covers the equipment businesses in that sector usually finance, what lenders look for in that trade and how the finance options compare. See every sector on our sectors we finance page.
| Sector group | Guides |
|---|---|
| Construction, quarrying and civil engineering | Plant hire, civil engineering, demolition, scaffolding, railway contractors, concrete and aggregates, quarry operators and electrical contractors |
| Farming and land | Agricultural contractors, crop and arable farms, dairy farms, horticulture and landscaping and grounds maintenance |
| Transport and logistics | Bus and coach operators, public transport operators, shipping and ports and car dealerships |
| Manufacturing and engineering | Mechanical engineering, pharmaceutical manufacturing, food and beverage processing, plastic injection moulding, furniture manufacturers and textile manufacturers |
| Hospitality and leisure | Restaurants and cafes, pubs and bars, hotels and resorts, leisure centres and gyms and sports and event venues |
| Healthcare and care | Dental practices and care homes |
| Media and online | Film production, television and radio broadcasters, photography studios and e-commerce businesses |
Types of asset finance
There are five main types of asset finance. Our types of asset finance guide compares them in full.
| Type | How it works | Best for |
|---|---|---|
| Hire purchase | Deposit plus fixed monthly payments. You own the asset after the final payment | Assets you will keep for their whole working life |
| Finance lease | Rentals over most of the working life. The lender owns the asset, and VAT is spread across the rentals | Keeping upfront costs and VAT outlay low |
| Operating lease | Rentals for part of the working life, then hand back or upgrade | Equipment you expect to replace in 2 to 4 years |
| Contract hire | Fixed rentals for a set term and mileage, often with maintenance included | Vans, cars and fleets |
| Asset refinance | Borrowing against assets you already own, or restructuring existing finance | Releasing cash for new equipment or working capital |
VAT and tax on asset finance
On hire purchase, VAT on the full price is usually paid at the start and reclaimed on your next VAT return. On a lease, VAT is added to each rental instead. With hire purchase you are treated as the owner for tax, so you may be able to claim capital allowances, such as the Annual Investment Allowance. Lease rentals are usually an allowable business expense. Tax depends on your circumstances, so check the treatment with your accountant.
Asset finance costs: a worked example
A £50,000 machine on hire purchase costs about £1,431 a month over 3 years, or about £934 a month over 5 years, after a 10% deposit and the VAT are paid upfront.
| Item | 3 years | 5 years |
|---|---|---|
| Price (excl. VAT) | £50,000 | £50,000 |
| Deposit (10%) | £5,000 | £5,000 |
| VAT paid upfront | £10,000 | £10,000 |
| Amount financed | £45,000 | £45,000 |
| Monthly payment | £1,430.99 | £934.13 |
| Total interest | £6,516 | £11,048 |
The longer term lowers the monthly payment by about £497 but adds around £4,532 of interest. Match the term to how long the asset will stay productive in the business.
Illustration calculated in October 2026, assuming an interest rate of 9% a year. It is not a quote. Your rate depends on your trading history, credit profile and the equipment.
How asset finance works
- Send us the details of the asset, the supplier quote and your business
- We approach the lenders on our panel that fund that type of asset and bring back the options
- The chosen lender reviews your accounts and bank statements and makes a credit decision
- You sign the agreement and the lender pays the supplier
- The asset is delivered and your payments begin
What lenders ask for
Most lenders ask for the same core documents, with more detail on larger or newer deals.
- Your last 2 years of filed accounts, or management accounts and a forecast for newer businesses
- Your last 3 to 6 months of business bank statements
- Supplier quotes or pro forma invoices for each asset
- Photo ID and address history for each director, member or partner
- Details of existing finance agreements
Who we can help
We arrange asset finance for UK limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000 that are for business purposes. We are not authorised by the FCA, so we cannot arrange agreements of £25,000 or less for sole traders or partnerships of two or three partners, or finance for personal use.
About Finance Assets
Finance Assets is the asset finance site of Bolton Business Finance Ltd, an independent commercial finance broker. We are a broker, not a lender, so we compare a panel of lenders for each deal rather than offering one bank’s products.
- Company: Bolton Business Finance Ltd, company number 12495909
- Founder: Marcus Wright, a commercial finance broker since March 2019
- Lenders: a panel of 135+ banks and specialist finance providers
- Membership: National Association of Commercial Finance Brokers (NACFB)
- Coverage: UK-wide, including London
- Office: Westgate House, 1 Westgate Avenue, Bolton, Greater Manchester, BL1 4RF. Call 0161 546 9128
Asset finance FAQs
What is asset finance?
Asset finance is a way for a business to pay for equipment, vehicles or machinery over an agreed term instead of in one go. The lender buys or owns the asset and uses it as security, so the business keeps its cash for wages, stock and growth. The main types are hire purchase, finance lease, operating lease, contract hire and asset refinance.
What assets can be financed?
Most assets that are used in the business, come from an identifiable supplier and hold some resale value can be financed. That includes HGV trailers, forklifts, machine tools, catering equipment, IT, telehandlers, aircraft and vessels. Soft assets such as software and fit-out can often be funded too, usually by specialist lenders or alongside hard assets.
What is the difference between hard and soft asset finance?
Hard assets, such as lorries, plant and machinery, keep a resale value, so lenders can recover their money by selling them. Soft assets, such as software, signage or office fit-out, have little resale value. Hard asset finance is easier to arrange and usually cheaper, while soft asset finance relies more on the strength of the business.
How long does asset finance last?
Most asset finance agreements run for 2 to 5 years, and up to 7 years for new, high-value equipment. Lenders match the term to the working life of the asset and usually cap its age at the end of the agreement, so older used equipment is often offered a shorter term.
Can a new business get asset finance?
Yes, although lenders look more closely at businesses with less than two years of trading. They may ask for a larger deposit, a personal guarantee from the directors or evidence of the work the asset will be used for. Hard assets with a strong resale value are the easiest to fund for a new business.
Can I raise cash against assets my business already owns?
Yes. Asset refinance lets a business borrow against equipment or vehicles it owns outright, or restructure existing finance to release equity. The cash is often used for new equipment or working capital. How much is available depends on the current value of the assets, their age and how the lender views the business.
Who can Finance Assets help with asset finance?
We arrange asset finance for UK limited companies and LLPs at any amount, and for sole traders and partnerships on business agreements over £25,000. We are not authorised by the FCA, so we cannot arrange agreements of £25,000 or less for sole traders or partnerships of two or three partners, or finance for personal use.
Get an asset finance quote
Tell us what you want to finance
Send us the asset, the price and a few details about your business. We will come back with the options that are realistic and what they are likely to cost.
About the author
Marcus Wright is the owner and founder of Bolton Business Finance Ltd, which trades as Finance Assets. He has worked in financial services since 2008, beginning his career at Santander, and has been a commercial finance broker since March 2019.
He founded Bolton Business Finance in 2020 to give businesses access to the whole lending market rather than one bank’s own product range. The firm is a member of the National Association of Commercial Finance Brokers and works with a panel of 135+ lenders. Call 0161 546 9128.
Finance Assets is a trading name of Bolton Business Finance Ltd, an independent commercial finance brokerage, not a lender. We are not authorised by the Financial Conduct Authority and can only complete non-regulated introductions. All lending is for business purposes only. Registered address: Westgate House, 1 Westgate Avenue, Bolton, Greater Manchester, BL1 4RF. Company number 12495909.