Investec review: asset finance and professions loans for UK businesses

Investec is a specialist bank and wealth manager, and in the UK its asset finance arm is one of the bigger names funding equipment, vehicles and technology for SMEs, corporates and professional practices. Smaller businesses usually reach Investec Asset Finance through a commercial finance broker, which is where Smart Funding Solutions comes in: we can compare Investec with the rest of the asset finance market for you.

01About Investec Asset Finance

Investec Group operates in the UK and South Africa across banking and wealth management. Its UK asset finance business says it has lent more than £5.7 billion to over 185,000 SMEs. It also owns Mann Island Finance, which handles truck and van finance.

Investec is clear about how it works with businesses of different sizes. Private companies with turnover above £25 million can deal with it directly as part of its corporate banking offer. Businesses below that level are directed to specialist commercial finance brokers, which is how most SMEs access its asset finance and professions loans.

Investec is one of the lenders on our panel. Smart Funding Solutions is an independent broker and is not part of Investec.

02What Investec funds

Investec's broker pages list leases, non regulated hire purchase, professions loans and materials handling finance, covering deals of up to £10 million. The main areas are:

Investec also mentions VAT deferrals on hire purchase for hard assets, stage payments, seasonal payments and foreign exchange options, which can help when equipment is imported or delivered in phases. Separately, Investec offers working capital and asset based lending for larger businesses.

03Who Investec suits (and who it may not)

Investec Asset Finance tends to suit:

• established businesses buying equipment, vehicles or technology and wanting to spread the cost
• manufacturers, logistics firms and contractors replacing or adding plant
• businesses investing in renewable or energy saving equipment
• professional practices such as accountants, solicitors and healthcare practices needing unsecured funding
• businesses with larger deals that need a lender with a big balance sheet

It may be less suitable for very new start ups, businesses with serious recent credit issues, or anyone looking for a general purpose cash flow loan outside the professions. Very small, quick equipment purchases can sometimes be placed more simply with a smaller specialist.

Investec's broker pages list leases, non regulated hire purchase, professions loans and materials handling finance, covering deals of up to £10 million.

04What Investec looks at

Investec says proposals up to £25,000 can receive an instant decision through its automated system, with an average underwriting decision of around two and a half hours on others. For asset finance, lenders typically look at:

• the asset itself: what it is, its age, its supplier and its likely resale value
• filed accounts and, for larger deals, management accounts
• business bank statements and existing finance commitments
• the credit history of the business and its directors
• a supplier invoice or quote for the equipment

Directors are often asked for a personal guarantee, particularly on soft assets and professions loans where the security value is lower.

05Pros and cons of Investec Asset Finance

Pros

• Large lender able to fund deals of up to £10 million
• Broad asset appetite, from plant and vehicles to technology and green energy
• Fast automated decisions on smaller proposals
• Flexible structures such as VAT deferral, stage and seasonal payments

Cons

• SMEs below £25 million turnover need to go through a broker
• Credit appetite suits established businesses better than start ups
• Personal guarantees are commonly requested
• Not a provider of general cash flow loans for most sectors

06Applying through a broker vs going direct

For most SMEs, Investec itself points you to a broker, so the real question is which broker and how many lenders they compare. A good broker will check whether hire purchase, a finance lease or a loan is better for your tax and balance sheet position before choosing a lender.

We arrange asset finance across our panel of 300+ lenders, including Investec. We gather the supplier quote, accounts and asset details once, present the case properly and compare the offers that come back. It is free to enquire; any broker fee is disclosed separately before you proceed. You can begin with our instant quotes tool, and you can read about Investec's own offer on its asset finance page.

07Alternatives to Investec

• Close Brothers: a long established asset finance lender with strong sector teams, worth comparing on plant and transport.
• Kingsley Asset Finance: a smaller independent lender that can suit professional practices and owner managed firms wanting a personal approach.
• Novuna: another large asset finance provider, useful for vehicle and equipment deals where you want a second big lender quote.