Finance Assets arranges hire purchase, leasing and contract hire for UK businesses buying new or used forklift trucks, reach trucks and warehouse equipment.
Forklift truck finance spreads the cost of materials handling equipment over 2 to 5 years, so a warehouse, manufacturer, builders’ merchant or distribution business can add trucks or replace an ageing fleet without a large cash outlay. We are a broker, not a lender, so we compare quotes from our lender panel rather than offering one bank’s product.
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
- Forklift truck finance lets a business spread the cost of trucks over 2 to 5 years.
- With hire purchase, the business owns the trucks after the final payment.
- Contract hire is common for forklifts and usually bundles maintenance into a fixed monthly cost, with an annual hours allowance.
- Forklifts from established brands hold their value well, so used trucks are widely funded.
- Finance Assets arranges forklift finance for limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000.
| Item | Detail |
|---|---|
| Equipment covered | Counterbalance forklifts, reach trucks, very narrow aisle trucks, pallet stackers, order pickers, rough terrain and multi-directional forklifts, attachments and batteries |
| Terms | Usually 2 to 5 years |
| Paid upfront | Hire purchase: often a 10% deposit plus VAT. Leases and contract hire: usually 1 to 3 rentals in advance |
| New or used | Both. Used trucks from dealers, with known hours and service history, are widely funded |
| Extra costs | Attachments, lithium-ion batteries, chargers, telematics and operator training can often be included |
| Who we help | Limited companies and LLPs, plus sole traders and partnerships on business agreements over £25,000 |
Forklifts and warehouse equipment we finance
Lenders will fund almost any materials handling equipment used in a business, as long as it comes from an identifiable dealer or manufacturer on a clear quote.
| Equipment group | Examples |
|---|---|
| Counterbalance forklifts | Electric, diesel and LPG counterbalance trucks, from 1.5 tonne warehouse trucks to heavy-duty yard trucks |
| Warehouse trucks | Reach trucks, very narrow aisle (VNA) and turret trucks, powered pallet trucks, pallet stackers and order pickers |
| Specialist trucks | Rough terrain forklifts, side loaders and multi-directional trucks for long loads such as timber and steel |
| Attachments | Side shifts, fork positioners, rotators, carton and bale clamps, and drum handlers |
| Power and fleet systems | Lithium-ion and lead-acid batteries, chargers, battery changing equipment, and fleet telematics and access control |
We regularly see trucks from manufacturers such as Toyota, Linde, Jungheinrich, Still, Hyster, Yale, Crown, Combilift and Mitsubishi. For telescopic handlers, see our telehandler finance guide, and for the vehicles that move your goods on the road, see transport and haulage finance.
Electric forklifts and lithium-ion batteries
Many fleets are moving from diesel and LPG to electric trucks, and from lead-acid to lithium-ion batteries. Lithium-ion batteries can be opportunity charged during breaks, so one battery can often cover a full shift without battery changes, but they cost more upfront.
- Batteries and chargers can go on the same agreement as the truck. For a used electric truck, lenders may ask about the battery’s age and condition, as it is a large part of the truck’s value.
- Charging infrastructure, such as charger points and electrical work, can sometimes be included, usually up to a set share of the total.
- Running costs are usually lower for electric trucks, which can help a business afford a higher monthly payment than the diesel truck it replaces.
What lenders look at on forklift finance
- Brand and model. Forklifts from the major manufacturers have a strong second-hand market, so lenders are comfortable funding them and often offer longer terms.
- Hours and condition. On a used truck, lenders look at the hours on the clock and the service history, much as they would look at mileage on a van.
- Thorough examinations. Forklifts are lifting equipment, and under LOLER they need a thorough examination at least every 12 months, or every 6 months if used to lift people. A current report on a used truck helps.
- Fleet size. A single pallet truck is usually below a lender’s minimum deal size. Replacing several trucks at once, or adding batteries and attachments, gives better terms.
- Your contracts. For a logistics or third-party warehousing business, lenders may ask about the customer contract the trucks support and how long it runs.
Hire purchase, leasing and contract hire compared
Hire purchase suits trucks you will keep for most of their working life. Contract hire suits businesses that want a fixed monthly cost including maintenance, and to replace trucks on a regular cycle. Our types of asset finance guide covers each option in more depth.
| Option | How it works | Best for |
|---|---|---|
| Hire purchase | You pay a deposit and fixed monthly payments, and own the trucks after the final payment and any option fee | Trucks you will run for many years and maintain yourself |
| Finance lease | You rent the trucks for most of their working life. At the end you extend at a low rent, or sell them for the lender and keep most of the proceeds | Spreading the VAT across a fleet replacement |
| Operating lease | You rent the trucks for part of their life, then hand them back or upgrade | Lower payments on trucks you will replace after a few years |
| Contract hire | A form of operating lease, usually through the dealer, with servicing, repairs and sometimes tyres included for an agreed annual hours allowance | Fixed, predictable fleet costs with no resale risk |
Hire purchase for forklift trucks
Hire purchase is the usual choice for forklifts you plan to keep. You pay a deposit, usually 10% plus the VAT, then fixed monthly payments, and ownership passes to you after the final payment and a small option-to-purchase fee. As the owner for tax purposes, the business may be able to claim capital allowances on the trucks.
Finance lease for forklift trucks
A finance lease keeps the upfront cost to a few rentals, and VAT is spread across the rentals rather than paid at the start. The lender owns the trucks throughout. At the end of the main term you can keep using them for a low secondary rent, or sell them on the lender’s behalf and receive most of the sale proceeds.
Operating lease and contract hire for forklift trucks
An operating lease sets the rentals against what the trucks are expected to be worth at the end of the term, so the lender carries the resale risk. Forklift contract hire adds maintenance to the rental, usually based on an annual hours allowance per truck. Check the allowance carefully: if your trucks run more hours than agreed, excess hours charges apply, and damage beyond fair wear and tear is charged when the trucks go back.
Forklift truck finance costs: a worked example
A £60,000 order, such as two new 2.5 tonne electric counterbalance forklifts with lithium-ion batteries and chargers, costs about £1,344 a month on a 4-year hire purchase, or about £1,121 a month over 5 years.
| Item | 4 years | 5 years |
|---|---|---|
| Price (excl. VAT) | £60,000 | £60,000 |
| Deposit (10%) | £6,000 | £6,000 |
| VAT paid upfront | £12,000 | £12,000 |
| Monthly payment | £1,343.79 | £1,120.95 |
| Total interest | £10,502 | £13,257 |
The longer term lowers the monthly payment by about £223 but adds around £2,755 of interest. Servicing is not included on hire purchase, so budget for it separately or compare against a contract hire quote.
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.
VAT and tax on forklift finance
| Option | VAT | Usual tax treatment |
|---|---|---|
| Hire purchase | Paid on the full price at the start, reclaimable if you are VAT registered | You may be able to claim capital allowances, such as the Annual Investment Allowance, and the interest is deductible |
| Finance lease | Added to each rental | Rentals are usually deductible |
| Operating lease and contract hire | Added to each rental | Rentals are usually deductible |
Tax depends on your circumstances, so check the treatment with your accountant.
What lenders ask for
Most forklift truck finance applications need the following.
- Your last 2 years of filed accounts, or management accounts and a forecast if you are newer
- Your last 3 to 6 months of business bank statements
- A quote from the dealer, showing each truck, its serial number and hours if used, and any batteries, chargers or attachments
- Photo ID and address history for each director
- Details of any existing finance agreements
Related guides
- Pallet racking finance, for racking, shelving and mezzanines
- Telehandler finance
- Transport and haulage finance
- Manufacturing equipment finance
- Types of asset finance
- All sectors we finance
Who we can help
We arrange forklift truck 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.
Forklift truck finance FAQs
Can I finance a single forklift?
Yes, a new counterbalance or reach truck is usually large enough to fund on its own. Smaller items such as a single pallet truck often fall below a lender’s minimum, so it works better to combine them. We can help limited companies and LLPs at most sizes, and sole traders and partnerships on agreements over £25,000.
How much does it cost to finance a forklift?
It depends on the truck, the term and your business. As an illustration, £60,000 of electric forklifts costs about £1,344 a month over 4 years on hire purchase at 9%, after a 10% deposit and the VAT paid upfront, or about £1,121 a month over 5 years.
Is it better to buy or contract hire a forklift?
Buying on hire purchase usually costs less overall if you run the truck for many years and can maintain it. Contract hire costs more over the long run but gives a fixed monthly cost including maintenance, and you hand the truck back at the end. It suits fleets that run high hours or want to replace trucks on a regular cycle.
Can I finance a used forklift?
Yes. Used forklifts from established brands are widely funded, especially through dealers who refurbish and warranty them. Lenders look at the hours, the service history and, for electric trucks, the battery. They cap the truck’s age at the end of the agreement, so an older truck may get a shorter term.
Can batteries and attachments be included?
Usually, yes. Most lenders will include lithium-ion or lead-acid batteries, chargers, attachments such as side shifts and clamps, and telematics on the same agreement as the trucks.
Can a new business get forklift finance?
Yes, although lenders look more closely at newer companies. They may ask for a larger deposit, a personal guarantee from the directors, or evidence of the contracts the trucks will support. Forklifts hold their value well, which helps.
Get a forklift truck finance quote
Tell us what you want to finance
Send us the trucks, 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.