CCTV and security system finance for businesses
Lease a security system if you want a low upfront cost, maintenance bundled into one payment and an easy upgrade when the technology moves on. Choose hire…
Asset finance
Equipment finance: spread the cost of the kit your business runs on
Get the tools, IT, catering, medical or site equipment you need now and pay monthly. Compare leasing, hire purchase and equipment loans, and what lenders check.
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- Amount
- From £10,000 to £10 millionLarger amounts through secured, property and asset-based finance
- Security
- Secured or unsecuredOptions compared for your case
- Suitable businesses
- Sole traders to limited companiesPartnerships and LLPs too
- Lender panel
- 300+ lendersWhole-of-market search
In short
The right structure depends on whether you want to own the kit.
Hire purchase suits equipment you will use for most of its working life, because it becomes yours after the final payment. Leasing suits IT and other kit that dates quickly, because you can hand it back and upgrade. An equipment loan gives ownership from day one. In each case the lender weighs the equipment's resale value alongside the business's trading and credit.
- IT and office
- Catering and hospitality
- Healthcare and professional
- Construction and site
- Other sectors
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About equipment finance
Equipment finance lets a business get the tools, technology and specialist kit it needs now and spread the cost over an agreed term.
It is for businesses of every size that would rather keep cash for wages, stock and growth than tie it up in a coffee machine, dental chair, server rack or set of site tools. Smart Funding Solutions searches its panel of 300+ lenders, including specialist equipment funders, to match the kit and the supplier to a lender that understands them.
Equipment finance is one of the options on our asset finance hub. The equipment itself usually secures the agreement.
Funding needs
What equipment can be financed?
Heavier production machinery such as CNC machines, presses and production lines is covered on our machinery finance page.
IT and office
computers, servers, telephony, printers and security systems.Catering and hospitality
ovens, refrigeration, coffee machines and EPOS; see commercial kitchen equipment finance.Healthcare and professional
dental chairs, imaging, diagnostic and treatment equipment.Construction and site
tools, access equipment and smaller plant; see construction equipment finance.Other sectors
gym equipment, cleaning machines, salon equipment and specialist tools.
Quick enquiry
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Not ready for the full application? Leave a few details and a broker will call you to talk it through. It is free, with no obligation.
- One short conversation, no paperwork yet
- Whole-of-market search across 300+ lenders
- Or call us on 01244 267694
A transaction we arranged
£8,950 + VAT
£8,950 + VAT of equipment, leased over 36 months.
Matched to the asset rather than to short-term working capital. The asset inspection completed and the deal paid out.
Read the transaction- Sector
- Renewable energy
- Structure
- Lease over 36 months
- Outcome
- Completed
Explore this section
In this section
More detail on specific needs within this topic.
Cleaning equipment finance for contract and commercial cleaners
Hire purchase suits robust cleaning machines you will run for years, such as ride-on scrubbers or van-mounted pure water systems, because you own them at the…
Who can get equipment finance?
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.
What security is needed for equipment finance?
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.
How long does equipment finance take?
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.
Alternatives to equipment finance
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.
Underwriting
What lenders look at
01
The equipment: its type, value, age, supplier and whether it has a resale market.
02
How long you have been trading, and your recent accounts.
03
Business and director credit history.
04
Affordability, based on bank statements and cash flow.
05
Any deposit; directors may also be asked for a personal guarantee.
Checklist
Documents to have ready
- A supplier quote or pro forma invoice with the equipment's specification.
- Latest filed accounts and recent bank statements.
- Director identification and address details.
- For start-ups, a short business plan and cash flow forecast.
Side by side
Compare your options
How the main business finance structures work. Lenders set their own terms, so treat this as a guide to the questions to ask.
| Option | How you repay | Security | Often used for |
|---|---|---|---|
| Unsecured business loan | Fixed instalments, usually monthly | No charge over assets; a personal guarantee is usually required | Growth, stock, tax bills and cash flow |
| Secured business loan | Fixed instalments, often over a longer term | A charge over property or other assets | Larger sums, property and refinancing |
| Revolving credit facility | Interest on what you draw; repay and redraw | Varies by lender and case | Recurring or uneven cash flow gaps |
| Merchant cash advance | A share of future card takings | No charge over assets | Card-taking businesses with uneven months |
| Asset finance | Regular payments over the life of the asset | The asset being financed | Equipment, vehicles and machinery |
| Invoice finance | Settled as customers pay their invoices | Your unpaid invoices | Businesses waiting on customer payment |
General information only. Every lender has its own criteria, and all finance is subject to status.
Ways to finance equipment
| Option | How it works | Often suits |
|---|---|---|
| Hire purchase | Deposit and instalments; you own the equipment after the final payment | Long-life equipment you plan to keep |
| Finance or operating lease | You rent the equipment for an agreed period, then return, extend or upgrade | Technology or kit you replace regularly |
| Equipment loan | You borrow to buy outright and repay over a fixed term | Businesses that want ownership from day one |
| Asset refinance | You release cash from equipment you already own | Raising working capital from existing kit |
Lease or buy?
Ask how long the equipment will stay useful to you. If it will earn its keep for most of its life, hire purchase usually makes sense. If it will be outdated in a few years, as IT and some medical and fitness kit can be, leasing lets you hand it back and upgrade without being left with an asset nobody wants.
Benefits and downsides
| Benefits | Downsides |
|---|---|
| Avoids a large upfront payment | Interest and fees mean you pay more than the cash price |
| Fixed instalments make budgeting easier | The equipment can be repossessed if payments are missed |
| Better or more efficient kit sooner | Technology can date before it is paid off |
| Deposit, term and balloon can often be tailored | Too many agreements can strain cash flow and limit other borrowing |
How we arrange equipment finance
- Get a quote from your supplier and tell us what you need and how you would like to structure it.
- We check which lenders fund that equipment and supplier.
- We approach suitable lenders and set out the options, including deposit, term and end-of-term choices.
- The lender completes its checks and makes the decision, sometimes asking for a larger deposit or a guarantee as a condition.
- You sign the agreement, the lender confirms delivery with you, then pays the supplier directly.
Once a lender has everything it needs, decisions can come within a few working days. It is free to enquire; if a broker fee applies, it is disclosed separately before you proceed. With a supplier quote to hand, you can explore funding options.
Calculator
Run the numbers first
Illustrative figures from the numbers you enter, before you speak to a lender.
FAQs
Questions clients ask
What happens if I can't make my equipment finance payments?
Contact your lender as soon as possible. Many lenders will discuss options such as a temporary payment arrangement. If payments stop and no agreement is reached, the lender can repossess the equipment and pursue any shortfall, including under a personal guarantee. Free, impartial debt advice is also available from organisations such as Business Debtline.
Can I finance several pieces of equipment in one agreement?
Often, yes. Many lenders will put several items from the same supplier, or a full fit-out package, under one agreement with a single monthly payment. Items from different suppliers can sometimes be combined too. Lenders look at the total value, the mix of hard and soft items and your affordability, so a detailed quote helps.
Can equipment finance cover installation and training costs?
Some lenders will include installation and training in an equipment finance agreement when the supplier invoices them with the equipment, but many prefer to fund only the kit itself. Costs with no resale value are judged more on the strength of your business. Where the extra costs are large, an unsecured business loan can cover the whole project and let you own the equipment from day one.
Does equipment finance show on my credit file?
Yes, equipment finance agreements are usually reported to credit reference agencies, so they appear on the business credit file and sometimes on the directors' personal files. Making payments on time can help build a positive record. Some lenders may use a soft search at the early stage, and a full search usually happens when you formally apply. Too many agreements at once can limit what other lenders will offer.
Is equipment finance tax deductible?
The tax treatment of equipment finance depends on the type of agreement. With hire purchase the business is usually treated as owning the equipment and may claim capital allowances, while lease rentals are generally treated as a business expense. Interest and fees can also affect your tax position. Your accountant should confirm what applies, and our guide to asset finance and capital allowances covers the basics.
Relevant transactions
More deals like this
£52,000 across two facilities. A new kitchen, and the cash to keep trading.
A hospitality and community venue invested in new kitchen equipment without using up its working capital.
Equipment and working-capital financeRead the transaction
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What our clients say
“Simon was fast, kept us updated at all stages and was a real pleasure to work with on our asset finance. I highly recommend this company: excellent service all round.”
“Spoke with Simon, who managed to get me the loan I needed promptly. The whole process was very smooth and was completed within a few days.”
“Getting a business loan can feel like a bit of a minefield, but everything was broken down for me in great detail. Will use again in the future!”
“Simon was a pleasure to deal with and helped us find a business loan that matched our growth goals and future expansion plans.”
“I couldn’t source funding for my business, but the team got in touch within an hour and had it sorted within 24 hours. Fantastic service, and I would definitely use them again.”
Why businesses choose Smart Funding Solutions
- Access to 300+ lenders
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