Kingsway Finance review: soft asset finance and business loans

Kingsway Finance, which now trades as Kingsway Asset Finance, is a Wilmslow based independent funder offering equipment leasing, hire purchase, sale and leaseback and commercial and professional loans to UK SMEs. It is particularly associated with soft assets, the everyday equipment that businesses rely on but that has little resale value. Smart Funding Solutions is an independent broker, so we can compare Kingsway with other asset finance and business loan providers on your behalf. You can read more on Kingsway Finance's own website.

01About Kingsway Finance

Kingsway says it started out as a brokerage in 1995 and grew into an independent funder. Since December 2018 it has been part of the Praetura Group's lending division, alongside Praetura Asset Finance, Praetura Commercial Finance, Praetura Invoice Finance and Zodeq. It is headquartered in Wilmslow, Cheshire, and works with businesses through a network of commercial finance brokers.

A 2019 British Business Bank announcement, when Kingsway received a funding line from British Business Investments, described it as concentrating on soft assets such as catering equipment and office furniture. Its website indicates it can support anything from a new start to an established business, and highlights decisions within 24 hours.

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

02What Kingsway Finance funds

Kingsway lists funding from £10,000 to £250,000 across these products:

If you are buying items like IT, furniture, catering or shop fitting equipment, our guide to soft asset finance explains why specialists like Kingsway are often more willing to fund them than general lenders. For an overview of the government scheme, see our page on the Growth Guarantee Scheme.

03Who Kingsway Finance suits (and who it may not)

Kingsway tends to suit:

• SMEs buying soft assets that banks and hard asset lenders are reluctant to fund
• new start businesses as well as established ones, which Kingsway says it can support
• professional practices wanting an unsecured loan for working capital, tax or investment
• businesses that want fixed, predictable monthly payments

It is less likely to suit requests above £250,000, high value hard assets where a hard asset specialist may offer more, or businesses that want to deal directly with a lender rather than through a broker. In those cases we would look at other lenders.

04What Kingsway Finance looks at

Kingsway relies on experienced underwriters rather than purely automated decisions. For asset finance and small business loans, funders typically look at:

• what the equipment is and who is supplying it, with a supplier invoice or quote
• filed accounts, or for new starts a business plan and the owners' experience
• recent business bank statements and existing finance commitments
• credit history of the business and its owners
• a personal guarantee from directors or owners

For sale and leaseback, expect to show proof that the business owns the equipment outright, along with its age and condition.

05Pros and cons of Kingsway Finance

Pros

• Specialist in soft assets that many lenders avoid
• Considers new starts as well as established businesses
• Decisions within 24 hours, according to Kingsway
• Part of the wider Praetura Group lending division

Cons

• Maximum of £250,000, which rules out larger projects
• Less of a focus on high value hard assets than some specialists
• Personal guarantees are usually part of the deal
• Works mainly through brokers rather than taking direct applications

Kingsway relies on experienced underwriters rather than purely automated decisions.

06Applying through a broker vs going direct

Kingsway works mainly through commercial finance brokers, so for most businesses a broker is the natural route in. The value of a whole of market broker is that we can also check whether hire purchase, a lease or an unsecured loan is the better structure, and whether another lender would offer more for your particular asset.

We search the market across our panel of 300+ lenders, present your case clearly and compare offers side by side. It is free to enquire; any broker fee is disclosed separately before you proceed. You can start with our instant quotes tool.

07Alternatives to Kingsway Finance

• Praetura: Kingsway's sister businesses in the same group cover asset, commercial and invoice finance, which may suit larger or more varied needs.
• Kingsley Asset Finance: an independent lender in Lancashire, worth comparing if you need hard asset finance or refinance.
• Time Finance: offers asset finance and business loans, worth comparing on soft and hard assets alike.