Finance Assets arranges asset finance for demolition companies, helping UK businesses fund demolition excavators, attachments, crushers, screeners and the lorries that move waste off site.
Asset finance for demolition companies spreads the cost of heavy, specialist plant over 3 to 7 years, so a contractor can take on bigger strip-out and demolition jobs without tying up the cash it needs for labour, tipping and disposal. We arrange demolition equipment finance on new and used machines, from a single breaker to a fleet of high-reach excavators and mobile crushers.
Written by Marcus Wright, founder of Bolton Business Finance Ltd, in financial services since 2008 and a commercial finance broker since 2019. Last reviewed September 2026.
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The short version
- Asset finance lets demolition companies spread the cost of excavators, attachments and crushers over 3 to 7 years.
- Demolition-spec excavators and crushers from known makers are widely funded, new or used.
- High-reach machines and demolition robots have a smaller pool of lenders, so the choice of lender matters more.
- Lenders look at your accreditations, waste permits and the jobs the plant will work on.
- Finance Assets arranges demolition equipment finance for limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000.
| Item | Detail |
|---|---|
| Plant covered | Demolition-spec and high-reach excavators, attachments, crushers, screeners, loaders and waste lorries |
| Deal sizes | From a single breaker or pulveriser to a fleet facility covering several machines |
| Terms | Usually 3 to 5 years on used plant, and up to 7 years on new machines from major manufacturers |
| Paid upfront | Hire purchase: often a 10% deposit plus VAT. Leases: usually 1 to 3 rentals in advance |
| New or used | Both, from dealers, auctions and other contractors |
| Who we help | Limited companies and LLPs, plus sole traders and partnerships on business agreements over £25,000 |
Demolition plant and equipment we finance
Lenders will fund most of the plant a demolition company runs, as long as it comes from a known manufacturer and there is a market to sell it into.
| Equipment group | Examples |
|---|---|
| Demolition excavators | Demolition-spec machines with reinforced cabs and guarding, high-reach excavators and convertible machines with a standard boom |
| Attachments | Hydraulic breakers, pulverisers, shears, multi-processors, crusher buckets, sorting grabs and quick hitches |
| Crushing and screening | Tracked jaw and impact crushers and mobile screeners that turn concrete and brick into recycled aggregate |
| Loading and site plant | Wheel loaders, dumpers, skid steers and compact track loaders |
| Specialist kit | Remote-controlled demolition robots, dust suppression cannons and asbestos decontamination units |
| Waste transport | Hook-loader and grab lorries, roll-on roll-off bins and skips. See our transport and haulage finance guides |
How demolition companies use asset finance
Most demolition companies use asset finance to own the machines and attachments they run every week, and to add crushing plant that turns waste into income.
- Owning the main machines. A demolition-spec excavator that works most weeks usually costs less to own on finance than to hire, and its attachments can sit on the same agreement.
- Adding crushing and screening. A mobile crusher cuts the cost of taking hardcore off site and turns it into recycled aggregate you can reuse or sell. Lenders can fund a crusher and screener together.
- Counting scrap and recycled income. Metal recovered from strip-out and demolition is often a steady second income, and lenders will look at it alongside contract income.
- Taking on bigger jobs. High-reach work and larger contracts need specialist plant, and finance lets you add it when the work is won rather than months before.
- Releasing cash from owned plant. Excavators, crushers and attachments you own outright can be refinanced to fund a new job or add working capital.
Finance options for demolition companies
Most demolition contractors buy plant on hire purchase, because heavy machines and attachments are worked hard and kept for years. Our types of asset finance guide covers each option in more depth.
| Type | How it works | Suits |
|---|---|---|
| Hire purchase | A deposit, then fixed monthly payments. You own the plant after the last one | Demolition excavators, attachments and crushers you will run for years |
| Finance lease | Rentals with VAT added to each one. The lender owns the plant | Keeping the deposit and VAT outlay down on high-value machines |
| Operating lease | Lower rentals set around the expected resale value. You hand the machine back at the end | Standard plant from major makers that you replace on a cycle |
| Contract hire | A fixed rental for an agreed term and mileage, often with maintenance included | Waste lorries, vans and crew vehicles |
Hire purchase for demolition companies
Hire purchase for demolition companies is the usual route for heavy plant, because demolition machines are worked hard, kept for years and rarely come back in the condition a lease return needs. You pay a deposit, typically around 10% plus the VAT, then fixed monthly payments, and the machine is yours after the final payment and a small option fee. Attachments bought with the machine can go on the same agreement.
Finance lease for demolition companies
A finance lease for demolition companies suits high-value plant where a deposit and the VAT would take a large bite out of cash. You pay a few rentals in advance, VAT is added to each rental, and the lender owns the machine. At the end you can keep it on a small secondary rental, or sell it on the lender’s behalf and keep most of the proceeds.
Operating lease for demolition companies
An operating lease for demolition companies is less common, because lenders price it around what the machine will be worth when it comes back, and demolition is hard on plant. It works best for standard-spec excavators and loaders from major manufacturers, used on lighter strip-out work with agreed hours and return conditions.
Contract hire for demolition companies
Contract hire for demolition companies is mostly used for waste lorries, vans and crew vehicles. You pay a fixed monthly rental for an agreed term and mileage, often with maintenance included, then hand the vehicle back. Hook-loader and grab lorries can also be bought outright on hire purchase through the lenders in our haulage finance guides.
High-reach excavators and specialist plant
High-reach excavators, demolition robots and other specialist plant can be financed, but fewer lenders take them on. The resale market for a high-reach machine is far smaller than for a standard 21-tonne excavator, so lenders may ask for a bigger deposit, a shorter term or evidence of the work lined up for it. Machines that convert back to a standard boom are easier to fund, because they are easier to sell. Going to the lenders that already understand specialist demolition plant saves wasted applications and credit searches.
VAT and tax on demolition equipment finance
Hire purchase means paying the VAT at the start and may bring capital allowances, while leases spread the VAT across the rentals.
| Type | VAT | Tax treatment |
|---|---|---|
| Hire purchase | The VAT on the full price is due at the start, and a VAT-registered company normally reclaims it on its next return | As the owner for tax purposes, you may be able to claim capital allowances such as the annual investment allowance or full expensing on new plant |
| Finance lease | VAT is charged on each rental and reclaimed through your normal returns | Rentals are usually treated as a business expense |
| Operating lease | VAT is charged on each rental | Rentals are usually treated as a business expense, and the lender claims any allowances |
| Contract hire | VAT is charged on each rental, with restrictions on cars | Rentals are usually a running cost of the business |
How this applies depends on your company’s profits, year end and other purchases, so speak to your accountant before choosing.
Demolition excavator finance costs: a worked example
A new 21-tonne demolition-spec excavator with a breaker and pulveriser at £180,000 costs about £3,363 a month on a 5-year hire purchase, or about £2,886 a month with a 20% balloon.
| Item | Standard | With 20% balloon |
|---|---|---|
| Price (excl. VAT) | £180,000 | £180,000 |
| Deposit (10%) | £18,000 | £18,000 |
| VAT paid upfront | £36,000 | £36,000 |
| Monthly payment (60 months) | £3,362.85 | £2,885.55 |
| Final balloon payment | None | £36,000 |
| Total interest | £39,771 | £47,133 |
The balloon lowers the monthly payment by about £477 but adds around £7,362 of interest over the term. Because demolition plant is worked hard, check the machine is likely to be worth at least the balloon amount after five years before you choose this option.
Illustration calculated in September 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 plant.
What lenders look for in demolition companies
Lenders look at the usual financial documents, plus the accreditations and permits that show you can work legally and win contracts.
- Accounts and bank statements. The last two years of filed accounts, recent management accounts and three to six months of business bank statements.
- Industry membership and training. NFDC membership, CCDO cards for operatives and site managers, and Constructionline or CHAS accreditation show you are an established contractor.
- Asbestos licence. If you carry out licensed asbestos removal, lenders will ask for your HSE licence and how long you have held it.
- Waste registrations and permits. Your waste carrier registration, and the environmental permit or registered exemption that covers crushing waste on site, where that applies.
- Insurance. Public and employers’ liability cover that includes demolition, at the levels your main contractors ask for.
- Order book. The jobs the plant will work on, their value and who the clients are. Repeat work for main contractors and developers counts in your favour.
Related guides
- Asset finance for civil engineering firms
- Waste skip finance, for skips and roll-on roll-off containers
- Asset finance for waste management companies, for skip loaders, shredders and transfer station plant
- Asset finance for recycling operations, for shears, material handlers and scrap metal plant
- Telehandler finance, for site handlers and rotating telehandlers
- Asset finance for scaffolding companies
- Asset finance for concrete and aggregates suppliers
- Asset finance for quarry operators, for crushers and screens on quarry sites
- Asset finance for railway contractors
- Transport and haulage finance
- All sectors we finance
Who we can help
We arrange asset finance for demolition companies that trade as 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.
Demolition equipment finance FAQs
Can I get finance on a used demolition excavator?
Yes. Used demolition-spec excavators from dealers, auctions and other contractors are funded regularly. Lenders look closely at hours, condition and the state of the guarding and hydraulics, because demolition work is hard on machines. Older plant may be offered a shorter term so the agreement ends while the machine still has value.
Can I finance attachments on their own?
Yes. Breakers, pulverisers, shears and crusher buckets from known makers can be financed on their own, or added to the agreement for a new excavator. Lenders are happier with branded attachments that have a resale market, and a small attachment can be easier to fund alongside a machine than separately.
Can asset finance fund a mobile crusher?
Yes. Tracked jaw and impact crushers and mobile screeners from established manufacturers are widely funded on hire purchase or leasing. Lenders may ask how the crusher will be used, and whether you hold the environmental permit or exemption needed to crush waste on site where that applies.
Is it harder to finance a high-reach excavator?
It can be. Fewer lenders fund high-reach machines because the resale market is smaller than for standard excavators. Expect questions about the work lined up for it, and possibly a larger deposit or shorter term. Machines that convert to a standard boom are easier to fund because they are easier to sell.
Can a newer demolition company get plant finance?
Yes, although lenders look harder at companies with less than two years of accounts. They may ask for a larger deposit, personal guarantees from the directors or evidence of contracts. Directors with a long record in demolition, NFDC links and a clean credit history make an application easier.
Can I raise cash against demolition plant I already own?
Yes. Through a sale and hire purchase back, a lender buys excavators, crushers or attachments you own outright and sells them back to you over a fixed term, so they stay on site. The amount depends on their current value and age. Contractors use it to fund a new job, buy more plant or add working capital.
Get a demolition equipment finance quote
Tell us about the plant
Send us the machines or attachments, the prices and a few details about the work you have lined up. 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.