Equipment finance: spread the cost of the kit your business runs on

Yes. Equipment finance is often one of the easier routes for a new business, because the kit itself gives the lender security. Expect a deposit, personal credit checks and a director's guarantee, and more choice for equipment that holds its value. Smart Funding Solutions, a whole-of-market commercial finance broker, approaches asset finance lenders on our panel that consider start-ups.

What lenders look for in a start-up

• Directors' personal credit, and often homeowner status or relevant industry experience.
• A short business plan and cash flow forecast; our guide to writing a business plan for funding helps.
• A supplier quote for the equipment, plus a deposit that may be larger than an established business would pay.
• Equipment with a clear resale market, such as vans, plant and machinery; specialist or bespoke kit is harder.

Options to compare

• Hire purchase if you want to own it; leasing for kit you will upgrade. See hire purchase vs leasing.
• Used equipment finance to keep the cost down.
• A government-backed Start Up Loan: GOV.UK says businesses trading for under five years can borrow £500 to £25,000 at a fixed 7.5% a year over one to five years: see applying for a Start Up Loan.

Common start-up purchases include food trucks, coffee machines, salon equipment, vans and IT. New practices can look at clinic start-up finance and dental equipment finance. For wider options, see start-up business loans. Instant Quotes shows which equipment lenders on our panel may suit.

Most UK trading businesses can apply for equipment finance, including limited companies, LLPs, partnerships and sole traders, provided the payments are affordable from the cash the business generates. Sole traders and small partnerships borrowing £25,000 or less may be offered a regulated agreement, which some lenders do not provide.

Start-ups and businesses with adverse credit may still be considered, sometimes with a larger deposit. Equipment with little resale value, such as software or bespoke installations, is assessed more on the strength of the business than the kit.

The equipment is normally the security: under hire purchase the lender owns it until the last payment, and under a lease it never passes to you, so no charge over property is usually needed. What changes from deal to deal is the extra comfort the lender asks for. Directors of younger companies, or of businesses financing soft or bespoke kit such as software, telephony or a fitted kitchen, are often asked for a personal guarantee. A larger deposit, a shorter term or a well-known supplier with a strong resale market can reduce that. If a guarantee is a concern, personal guarantee insurance is worth discussing before you sign.

A straightforward equipment finance deal often completes within a few working days of a full application, and more involved cases typically take one to three weeks. Standard kit from an established dealer, a limited company with filed accounts and a clean credit file sit at the quick end. Used equipment bought from a private seller, bespoke installations, start-ups needing a business plan review, or several items from different suppliers take longer, because the lender has to verify the seller, value the kit or confirm installation. Payout also waits for you to confirm delivery, so a supplier with a long lead time sets the real pace.

If an equipment agreement is not the right fit, there are several other ways to pay for kit. An unsecured business loan lets you buy outright and own the equipment from day one, and can cover installation and training that lenders may not finance against the asset. Buying second-hand through used equipment finance lowers the amount you borrow. For frequent smaller purchases, a revolving credit facility can be drawn and repaid as needed. Some suppliers also offer extended terms; our guide to B2B buy now, pay later explains how those work.

For a small business, the choice is usually between an equipment finance agreement, where the kit secures the deal, and a small business loan that buys it outright. Finance on the equipment is often cheaper and easier to get; a loan gives ownership from day one and can cover installation, training and software that lenders may not finance against the asset.

• Amounts: we arrange finance from £10,000 to £20 million, so a single kitchen refit or a laptop refresh across the team can be funded on its own.
• Sole traders: finance of £25,000 or less to a sole trader or small partnership can be regulated consumer credit, and not every lender offers it.
• New businesses: a hard asset, a deposit and a director who owns their home all widen the choice; see start-up business loans.
• Loans instead: see small business loans and unsecured business loans.

Used equipment can be financed, but rules are tighter than for new kit. On our panel one lender will not fund used IT or shop fittings at all, and another funds soft assets only up to 3 years old (checked October 2026). Hard equipment with a resale market, from commercial kitchens to workshop machines, is easier. See used equipment finance.

If you paid cash for equipment recently, a sale and leaseback can put that money back in the business. Lenders on our panel fund soft assets such as IT, fit-outs and medical kit this way when the invoice is up to 90 days old (checked October 2026); older hard assets can usually be refinanced instead. See sale and leaseback and asset refinance.

Pages for specific kit and sectors.

• Technology and energy: IT equipment finance, EV charger finance, Green business finance, Soft asset finance.
• Catering, retail and premises: Coffee machine finance, Commercial refrigeration finance, Commercial kitchen equipment finance, Warehouse equipment finance.
• Health and services: Medical equipment finance, Cleaning equipment finance, Gym equipment finance.
• Tools and guides: Asset finance calculator, Hire purchase vs leasing, Asset finance and capital allowances.