Black Arrow Finance review: soft asset leasing for UK businesses

Black Arrow Finance is a specialist soft asset funder: it leases the things a business needs but a typical lender sees as hard to resell, such as office fit-outs, furniture, technology and specialist equipment. It has been in asset finance for decades and has always built its business around brokers. Black Arrow Finance is one of the lenders on our panel, so we can put your proposal to it and compare the result with other leasing companies.

01About Black Arrow Finance

Black Arrow's history starts with Edward Radio, set up in 1949. According to the company, the founding family bought the Black Arrow business from Granada in 1959 and grew it into asset finance and leasing, later becoming a listed company in the 1980s. Today the group entity is Black Arrow Group Limited. Companies House shows Black Arrow Finance Limited was incorporated in 1963 as Black Arrow Leasing Limited and took its current name in 1981. It is based on the Great West Road in Brentford.

The company sums up its approach as being flexible, imaginative and quick to act. It says brokers have been at the heart of the business from the start, and it aims for fast underwriting with same day payouts once a deal is approved.

02What Black Arrow Finance funds

Black Arrow's FAQ is unusually clear about what it does and does not do:

Its history includes large office fit outs for City firms, and its recent case studies range from perishable cargo logistics to specialist food retail. Typical soft assets include furniture, shopfitting, refurbishment, IT and telephony, software and signage. Our fit out finance guide explains how projects like these are usually funded.

03Who Black Arrow suits (and who it may not)

Black Arrow is likely to suit:

• Businesses fitting out offices, shops, clinics or restaurants where most of the spend is on soft assets.
• New businesses with a sensible proposition and directors who can support it; Black Arrow says it considers start ups on that basis.
• Applicants with historic adverse credit that can be clearly explained.
• Directors who do not own a home, for smaller deals: Black Arrow accepts non-homeowners up to £20,000.

It may not suit:

• Businesses in Northern Ireland or the Republic of Ireland, which it does not cover.
• Anyone needing a cash loan or working capital.
• Vehicle or plant purchases, unless you are already an established client.
• Non homeowners needing more than £20,000, unless the case is exceptionally strong.

04What Black Arrow looks at

Black Arrow lists the documents it expects with a proposal:

• Three months of business bank statements, no older than 90 days.
• A net worth statement from the directors, as personal guarantees are part of its process.
• A business plan, cash flow forecast and management information where available.
• Supplier details and invoices for the assets.

It says an underwriting decision typically takes two working days, and acceptances stay valid for 60 days. Because soft assets have little resale value, the strength of the directors and the business carries most of the weight in the decision.

05Pros and cons

Pros

• Genuine specialist in soft assets that many lenders avoid.
• Considers start ups, historic adverse credit and non-homeowners for smaller deals.
• Clear published criteria and document list.
• Terms of up to 7 years in the right cases.

Cons

• No loans and, for most clients, no vehicle or hard asset finance.
• Personal guarantees with a director net worth statement are standard.
• Not available in Northern Ireland or Ireland.
• Specialist soft asset funding is priced for risk, so strong businesses should compare mainstream options too.

It says an underwriting decision typically takes two working days, and acceptances stay valid for 60 days.

06Applying through a broker vs going direct

Black Arrow takes proposals from brokers and directly, but soft asset leasing varies a lot between funders on term, deposit and how they view directors without property. A business that qualifies for mainstream equipment finance may not need a specialist at all. We search the market, prepare the proposal and documents lenders ask for, and approach suitable lenders so you can compare. It is free to enquire; any broker fee is disclosed separately before you proceed.

Use our Instant Quotes tool to compare lenders in minutes. Smart Funding Solutions is an independent broker and is not part of Black Arrow Finance. Its criteria are published on its FAQ page.

07Alternatives to Black Arrow Finance

• Armada Asset Finance is another soft asset specialist with a strong appetite for hospitality and leisure.
• Asset Advantage funds fit outs and soft assets too, and also offers capex loans for larger projects.
• Tower Leasing may suit very small equipment leases below Black Arrow's usual range.

Directors without property should also read our guide to business loans for non-homeowners.