Liberty Finance review: specialist asset finance for UK businesses

Liberty Finance is an independent asset finance lender that has been funding UK businesses since 2001. It is known for underwriting by people rather than rigid scorecards, which makes it a common name when a deal is a little outside what a high street lender will do. Smart Funding Solutions is an independent broker and is not part of Liberty Finance; Liberty is one of the lenders on our panel, so we can set its terms beside the rest of the market before you commit.

01About Liberty Finance

Liberty started life as a PLC in 2001 and has since become an Employee Ownership Trust, so it is owned on behalf of its staff rather than by a bank or a private equity fund. It is based at Liberty House in Warsash, near Southampton, and lends across the UK.

The business describes itself as an alternative lender that "looks at the bigger picture". In practice that means a person reviews each proposal and is willing to weigh up the asset, the business and the individuals behind it, rather than declining on a single credit score. Liberty says it has helped more than 3,100 customers since it began.

Its customers are mainly UK SMEs, sole traders and partnerships, plus high net worth individuals buying high value vehicles. It also states that it will consider people who have faced credit challenges, which is not something every asset lender is open to.

02What Liberty Finance funds

Liberty offers three core products. Each one is secured on the asset itself, which is why the asset type and its resale value matter so much to the decision.

Liberty's website gives a lending range that starts at £10,000. Its homepage quotes deals up to £1 million and its about page refers to up to £2 million, so larger cases are worth discussing. Its about page gives terms of 12 to 60 months, depending on the age and type of asset.

The asset types it lists are broad:

• Cars: including prestige and classic vehicles, a niche that many mainstream lenders avoid. See our guide to prestige car finance for business.
• Commercial vehicles: vans and light commercials, HGVs and taxis.
• Construction and yellow plant: excavators, diggers and cranes. Our page on plant finance covers how these deals are usually structured.
• Agriculture: tractors and farm equipment.
• Machinery: CNC and print equipment, among others.

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

Liberty is likely to be a good fit if:

• You are buying a tangible, resaleable asset such as plant, a lorry or a quality car.
• Your accounts or credit history have a wrinkle that you can explain, and you want a person to listen.
• You are a sole trader or partnership rather than a limited company.
• You own valuable kit outright and want to release cash from it through refinancing.

It may be less suitable if:

• Your credit profile is strong and your purchase is mainstream. A prime bank lender may offer sharper terms.
• You need software, fit out or other soft assets funded. Liberty's focus is on hard assets that hold their value.
• The deal is very small. Liberty's stated minimum is £10,000.

04What Liberty Finance looks at

Because underwriting is manual, Liberty will want to understand the whole picture. Typical information for an asset finance proposal includes:

• Details of the asset: make, model, age, supplier invoice or quote, and whether it is new or used.
• Recent business bank statements and, where available, the latest accounts.
• Information on the directors, partners or owner, including their experience in the trade.
• An explanation of any past credit issues and what has changed since.
• For refinancing, proof of ownership and confirmation of any finance still outstanding on the asset.

Expect the strength of the asset to carry a lot of weight. A well known brand of plant with a strong used market is easier to fund than a bespoke machine with few buyers.

05Pros and cons

Pros

• Long track record, lending since 2001.
• Decisions made by people who will consider the full story.
• Open to sole traders, partnerships and individuals as well as companies.
• Covers niches such as classic and prestige cars and taxis.
• Refinancing option to release cash from owned assets.

Cons

• A specialist lender may not be the cheapest choice for a clean, prime case.
• Focus is on hard assets, so soft asset deals may not fit.
• A £10,000 minimum rules out very small purchases.

Because underwriting is manual, Liberty will want to understand the whole picture.

06Applying through a broker vs going direct

You can approach Liberty yourself through its own website. The risk of going straight to one lender is that you never find out whether another would have offered a better structure, a lower deposit or a longer term for the same asset.

When you come to us, we look at your purchase, your business and your credit position, then search the market and approach the lenders most likely to say yes on sensible terms. That might be Liberty, or it might be a prime bank or another specialist. You make one enquiry and we present the case properly, including any context that a scorecard would miss. It is free to enquire; any broker fee is disclosed separately before you proceed.

To see what is available for your asset, start with our instant quotes tool and compare lenders in minutes.

07Alternatives to Liberty Finance

• Close Brothers: a large asset finance lender with deep experience in plant, commercial vehicles and agriculture. Worth comparing for bigger or more mainstream deals.
• Haydock Finance: another independent asset lender used for harder to place cases and used equipment.
• Lombard: part of NatWest Group and often a strong option for established limited companies with clean credit.

For an overview of how the different structures compare, read our guide to asset finance, or see our page on asset refinance if you want to raise cash against kit you already own.