Finance Assets arranges hire purchase and leasing for UK businesses fitting out warehouses with pallet racking, shelving and mezzanine floors.
Pallet racking finance spreads the cost of a racking installation over 2 to 5 years, so a warehouse, manufacturer or distributor can fit out a new unit or add capacity without paying for it all upfront. 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
- Pallet racking finance lets a business spread the cost of a warehouse fit-out over 2 to 5 years.
- Racking, shelving, mezzanines, installation and protection can go on one agreement.
- Yes, racking can be leased. Hire purchase is more common, and the business owns the racking at the end.
- Lenders look closely at installation costs and, in leased premises, whether your landlord will sign a waiver.
- Finance Assets arranges racking finance for limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000.
| Item | Detail |
|---|---|
| Equipment covered | Adjustable pallet racking, narrow aisle, drive-in, push-back, mobile and cantilever racking, shelving, mezzanine floors and racking protection |
| Terms | Usually 2 to 5 years |
| Paid upfront | Hire purchase: often a 10% deposit plus VAT. Leases: usually 1 to 3 rentals in advance |
| New or used | Both. Used racking from established brands can be funded when supplied and installed by a recognised company |
| Extra costs | Design, installation, upright protectors, mesh decking and signage can usually be included |
| Who we help | Limited companies and LLPs, plus sole traders and partnerships on business agreements over £25,000 |
Racking and storage we finance
Lenders will fund most storage systems installed by a recognised racking company on a clear quote.
| Equipment group | Examples |
|---|---|
| Pallet racking | Adjustable pallet racking (APR), narrow aisle and very narrow aisle racking, double-deep racking |
| High-density racking | Drive-in, push-back, pallet live (flow) and mobile racking systems |
| Specialist racking | Cantilever racking for timber, steel and pipe, and coil and sheet storage |
| Shelving | Longspan shelving, boltless and steel shelving, carton live storage and multi-tier picking systems |
| Mezzanines and protection | Mezzanine floors and storage platforms, upright protectors, end-of-aisle barriers, mesh decking and anti-collapse mesh |
We regularly see systems from brands such as Dexion, Link 51, Apex, Stow and Mecalux. Racking is often bought alongside new trucks, so see our guide to forklift truck finance if you need both.
Installation, premises and your landlord
Racking differs from most financed equipment because it is designed for one building and fixed to its floor. That shapes how lenders approach it.
- Installation costs. Design, delivery and fitting can be a large part of the total and have no resale value. Most lenders will include them, usually up to a set share of the deal.
- Landlord waivers. If you lease your warehouse, a lender may ask your landlord to confirm in writing that the racking belongs to the lender, not the landlord, and that the lender can remove it if needed. Allow time for this, as landlords and their solicitors can be slow to respond.
- Lease length. Lenders will usually want the finance term to end before your property lease does, or for you to have a clear right to renew.
- Mezzanine floors. A mezzanine can be closer to part of the building than to equipment, and some need building regulations approval. Freestanding storage platforms are usually easier to fund than floors built into the structure.
- Staged payments. Racking companies often ask for a deposit on order and the balance on completion. Many lenders can pay the supplier in stages.
What lenders look at on racking finance
- The business, more than the racking. Used racking has a second-hand market, but taking it down and moving it is costly. Lenders rely mainly on your trading and accounts.
- The installer. Lenders prefer recognised racking companies, ideally members of SEMA, the Storage Equipment Manufacturers’ Association.
- Inspections and safety. HSE guidance expects racking to be inspected regularly, with an expert inspection at least once a year. Lenders will not ask for this upfront, but damaged or overloaded racking is a risk to the business and to the security.
- Why you need it. A new contract, a move to a larger unit or growing stock levels all help explain the investment.
Hire purchase, finance lease and operating lease compared
Is racking finance a lease? It can be, but most racking is funded on hire purchase, because racking lasts for many years and businesses usually want to own it. 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 racking after the final payment and any option fee | Racking you will keep for many years, often the case for a long-term site |
| Finance lease | You rent the racking for most of its working life. At the end you extend at a low rent, or sell it for the lender and keep most of the proceeds | Large fit-outs where spreading the VAT helps cash flow |
| Operating lease | You rent the racking for part of its life, then hand it back. Less common, as moving racking is costly | Short-term sites or a fit-out tied to a fixed-term contract |
Hire purchase for pallet racking
Hire purchase is the usual choice for racking and shelving. 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 racking.
Finance lease for pallet racking
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 racking throughout. At the end of the main term you can keep using it for a low secondary rent, which suits racking that will stay in place for years.
Operating lease and contract hire for racking and shelving
An operating lease sets the rentals against what the racking is expected to be worth at the end of the term, so the lender carries the resale risk. Because dismantling and moving racking is costly, few lenders offer operating leases or contract hire on it. They are most likely on mobile racking systems from major manufacturers, or where the racking supplier offers its own rental scheme.
Pallet racking finance costs: a worked example
An £80,000 warehouse fit-out, covering adjustable pallet racking, longspan shelving, upright protection and installation, costs about £2,290 a month on a 3-year hire purchase, or about £1,495 a month over 5 years.
| Item | 3 years | 5 years |
|---|---|---|
| Price (excl. VAT) | £80,000 | £80,000 |
| Deposit (10%) | £8,000 | £8,000 |
| VAT paid upfront | £16,000 | £16,000 |
| Monthly payment | £2,289.58 | £1,494.60 |
| Total interest | £10,425 | £17,676 |
The longer term lowers the monthly payment by about £795 but adds around £7,251 of interest. In leased premises, keep the term within the remaining length of your property lease.
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 racking 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 | Added to each rental | Rentals are usually deductible |
Racking and shelving generally count as plant and machinery. Mezzanine floors are less clear-cut and can depend on how they are built and used, so check the treatment with your accountant before you commit.
What lenders ask for
Most pallet racking 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 racking company, showing equipment, installation and any staged payments separately
- Details of your premises, including the lease term and landlord contact if you rent
- Photo ID and address history for each director
- Details of any existing finance agreements
Related guides
- Forklift truck finance, for counterbalance, reach and electric trucks
- Asset finance for e-commerce businesses, for warehouse and fulfilment fit-outs
- Transport and haulage finance
- Manufacturing equipment finance
- Types of asset finance
Who we can help
We arrange pallet racking 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.
Pallet racking finance FAQs
Can you lease pallet racking?
Yes. Racking can be funded on a finance lease, and occasionally an operating lease. Most businesses choose hire purchase, because racking lasts for many years and they want to own it at the end. 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 pallet racking?
It depends on the installation, the term and your business. As an illustration, an £80,000 warehouse fit-out costs about £2,290 a month over 3 years on hire purchase at 9%, after a 10% deposit and the VAT paid upfront, or about £1,495 a month over 5 years.
Can installation be included in racking finance?
Usually, yes. Most lenders will include design, delivery and installation alongside the racking, along with protection and mesh decking, usually up to a set share of the total.
Do I need my landlord’s permission to finance racking?
Often, yes. If you rent your warehouse, many lenders ask the landlord to sign a waiver confirming the racking belongs to the lender and can be removed. It is worth contacting your landlord early, as this can take a few weeks.
Can I finance a mezzanine floor?
Often, yes, particularly freestanding storage platforms from recognised suppliers. Mezzanines built into the structure of the building are harder to fund as equipment, and the tax treatment can differ, so check with your accountant.
Can I finance used racking?
Sometimes. Used racking from established brands can be funded when it is supplied, checked and installed by a recognised racking company. Lenders are less keen on racking bought privately and installed by the business itself.
Get a pallet racking finance quote
Tell us what you want to finance
Send us the racking quote, your premises details 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.