Davenham Asset Finance review: asset finance and refinance for SMEs

Davenham Asset Finance is an independent lender that specialises in funding and refinancing the hard assets SMEs depend on, from excavators and printing presses to HGVs and coaches. It is often used where a business needs cash released from equipment it already owns, or where the situation needs more flexibility than a mainstream lender offers. Davenham Asset Finance is one of the lenders on our panel, and as an independent broker we can compare it with the wider asset finance market before you proceed.

01About Davenham Asset Finance

Davenham Asset Finance Limited describes itself as an independent UK asset finance and asset refinance lender to the SME sector. It is privately owned, part of the wider Davenham Group, and based on King Street in Manchester city centre.

Its focus is on equipment heavy industries such as construction, manufacturing, printing, agriculture and transport. It stresses flexibility in how deals are structured, which is useful when a business's recent accounts do not tell the whole story. Because the lending is secured on the equipment, the quality and value of your assets carry real weight in the decision.

Smart Funding Solutions is an independent broker and is not part of Davenham Asset Finance.

02What Davenham Asset Finance funds

Davenham's website lists the following products:

Advances run from £15,000 to £350,000, and the term offered depends on the age and type of asset.

The assets Davenham names include construction plant and machinery, engineering and manufacturing machinery, printing machinery, agricultural machinery, haulage vehicles, buses and coaches, and private vehicles used in the business.

03Who Davenham Asset Finance suits (and who it may not)

Davenham is well suited to established limited companies that own or are buying hard, resaleable equipment and need a lender that will look at the asset value as well as the accounts. Typical situations include a contractor releasing cash from paid off plant, a printer refinancing a press to fund a new contract, or a coach operator that has had a tough year and needs to restructure.

It is not the right lender for soft assets such as IT and software, for deals below £15,000 or above £350,000, or for consumer style agreements. Its lending is aimed at incorporated SMEs, so some sole traders and small partnerships, particularly on smaller deals, may need another lender. It is also not a quick online process: asset backed deals involve valuations and paperwork, so allow time if you are refinancing to meet a deadline.

Advances run from £15,000 to £350,000, and the term offered depends on the age and type of asset.

04What Davenham Asset Finance looks at

For asset backed lending of this kind, expect the lender to look at:

• A list of the assets, with make, model, age, serial numbers and proof of ownership for refinance.
• An independent valuation or inspection for used and refinanced equipment.
• Recent accounts, management figures and business bank statements.
• Any existing finance on the assets, which would usually be settled from the new advance.
• Director details, credit searches and, typically, personal guarantees.

This is a general guide for asset finance and refinance rather than a checklist published by Davenham.

05Pros and cons

Pros

• Specialist in refinance and turnaround situations, not just straightforward purchases.
• Strong appetite for plant, machinery, haulage and passenger vehicles.
• Independent and privately owned, with flexible deal structuring.
• Can release cash from equipment you already own.

Cons

• Maximum advance of £350,000.
• Hard assets only, so less suited to IT or soft asset purchases.
• Limited options for smaller sole trader and partnership deals.

06Applying through a broker vs going direct

Refinance and turnaround deals are where comparing lenders matters most, because valuations, advance levels and terms can differ widely. We compare asset refinance and asset finance lenders, prepare your asset list and figures once, and approach the lenders whose appetite fits. For older equipment, our guide to used equipment finance explains what lenders usually accept.

It is free to enquire; any broker fee is disclosed separately before you proceed. To see your options, use Instant Quotes and compare lenders in minutes.

07Alternatives to Davenham Asset Finance

• Close Brothers: better for larger deals and a full range of leasing structures.
• Cambridge & Counties Bank: a specialist bank that funds agricultural, construction and transport assets up to much larger single asset values.
• Eastern Credit: an independent Norfolk lender that can be worth comparing on smaller vehicle and equipment deals.

If your fleet is the main asset, see our guide to HGV finance.