Aldermore review: asset finance and refinance for UK businesses

Aldermore is a UK specialist bank, part of the FirstRand Group, with a large asset finance business serving small and medium-sized companies. It is best known in asset finance for construction and transport equipment, and it works mainly through intermediaries rather than branches. Smart Funding Solutions is an independent broker and is not part of Aldermore, so we can put its proposal side by side with other asset finance lenders. You can read more on Aldermore's own website.

01About Aldermore

Aldermore Group is made up of two operating companies, Aldermore Bank PLC and MotoNovo Finance Limited, and is part of FirstRand Group, which describes itself as the largest financial services group in Africa by market capitalisation. Aldermore Bank's registered office is in Reading.

Aldermore has no high street branches. It serves customers online, by phone and through intermediary networks. Alongside asset finance, the group offers invoice finance, commercial real estate lending, property development finance, mortgages and savings, while MotoNovo provides motor finance.

For asset finance, Aldermore says it specialises in construction and transportation assets and has dedicated teams for those sectors, as well as for agriculture, energy and infrastructure and fleet finance. Its refinance page says the bank works through intermediary partners to serve SMEs, which is why many businesses meet Aldermore through a broker.

Aldermore is one of the lenders on our panel for asset finance.

02What Aldermore funds

Product	What it is for	Typical size	Typical term
Hire purchase	Buying equipment or vehicles over time, with ownership passing at the end for a nominal fee	Up to around £1,000,000 per deal	Matched to the asset's economic life
Finance lease and operating lease	Using an asset for a fixed rental without owning it, with options at the end	Up to around £1,000,000 per deal	Matched to the asset's working life
Refinance	Releasing cash from assets you own, or from assets financed elsewhere	Up to around £1,000,000	Agreed case by case

Assets Aldermore lists include trucks, trailers and vans, manufacturing machinery, construction equipment, recycling machinery and agricultural equipment. It says assets must be fit for purpose and in new or acceptable condition. Aldermore also says it can fund up to 100% of the asset cost, excluding VAT, with the asset itself as the main security.

Refinance can be used for a specific project, a deposit on new equipment, buying another business, or purchasing assets that are hard to finance in the usual way. Our page on asset refinance explains how this kind of facility works.

03Who Aldermore suits (and who it may not)

Aldermore considers sole traders, partnerships, LLPs and limited companies. It tends to suit:

• Established construction firms buying plant, excavators, cranes or access equipment.
• Haulage and transport operators financing trucks and trailers. See our page on HGV finance.
• Manufacturers, recyclers and farms with substantial equipment needs.
• Businesses that want a bank lender with sector specialists who understand the kit.

Aldermore says it may still help businesses with past payment issues if these can be explained. Even so, as a bank lender it is geared to substantial assets, and very small purchases may be better placed with a small-ticket specialist. Start-ups with no trading record may also find bank lenders harder going.

Assets Aldermore lists include trucks, trailers and vans, manufacturing machinery, construction equipment, recycling machinery and agricultural equipment.

04What Aldermore looks at

Aldermore says it considers each application individually, looking at the strength of the business, its experience and its future plans, and that it checks your financial background, current performance and credit report. In practice, for asset finance of this size you can typically expect to provide:

• Recent filed accounts and, ideally, up-to-date management figures.
• Business bank statements.
• A supplier quote or invoice with the make, model, age and serial details of the asset.
• Details of existing finance agreements.
• Information about the directors or owners, who may be asked to give a personal guarantee.

05Pros and cons

Pros

• A bank lender with specialist construction and transport teams.
• Hire purchase, leasing and refinance all available.
• Can fund up to the full cost of the asset, excluding VAT.
• Considers sole traders and partnerships as well as companies.
• Will look at explained past payment problems.

Cons

• Works largely through intermediaries, so you cannot always deal with it directly.
• Bank credit standards apply, which can be tough for start-ups.
• Geared to substantial assets rather than small-ticket kit.
• Assets need to be in good condition and have a resale market.

06Applying through a broker vs going direct

Because Aldermore works with intermediaries for much of its asset finance, a broker is a natural route in. The bigger advantage is comparison: Aldermore may be the best option for a fleet of tippers, but another lender might price a single used machine more keenly or accept a younger business.

We search the market, prepare the asset details and accounts in the form lenders want, and manage one application. It is free to enquire; any broker fee is disclosed separately before you proceed. Use Instant Quotes to compare lenders in minutes. For more on ownership options, see our guide to finance leases.

07Alternatives to Aldermore

• Allica Bank: a business bank for established SMEs, worth comparing for hard assets and green equipment.
• Close Brothers: a long-standing asset finance lender with broad sector coverage, often strong on used equipment.
• Lombard: the asset finance arm of a major banking group, suited to larger established businesses.