Lombard review: asset finance and leasing from NatWest Group

Lombard is one of the best known names in UK equipment and vehicle finance. As part of NatWest Group, it funds everything from a single van to large fleets, aircraft and renewable energy projects. Smart Funding Solutions is an independent broker and is not part of Lombard or NatWest. Lombard is one of the lenders on our panel, so we can compare its offer with other banks and specialist asset lenders. You can read more on Lombard's own website.

01About Lombard

Lombard says it has provided asset finance to UK businesses since 1861, more than 160 years. It describes itself as the UK's largest asset finance provider. Being part of NatWest Group gives it access to a large balance sheet and links to the wider bank, which matters for bigger and longer agreements.

Lombard works with businesses directly and through broker and intermediary networks. It says it serves businesses of all sizes, from a single investment to large scale transformation programmes, and has specialist knowledge across a wide range of sectors.

02What Lombard funds

Lombard offers a wider menu of structures than most asset lenders. The right one depends on whether you want to own the asset, how long you will keep it and how you want it treated in your accounts.

It also offers refinance solutions for businesses that want to free up cash from existing equipment. Our guide to asset refinance explains how that works.

The asset classes Lombard lists include:

• Cars and vans, and larger commercial vehicles.
• Agricultural equipment.
• Marine assets, both leisure and commercial.
• Technology.
• Renewable energy. See our page on green business finance.
• Aviation.
• Machinery and healthcare equipment.

Lombard does not publish fixed deal sizes or terms on its website. Exact limits depend on the asset, the structure and the business.

03Who Lombard suits (and who it may not)

Lombard is often a strong fit for:

• Established limited companies with a few years of accounts and a clean credit record.
• Businesses buying mainstream assets with a good resale market, such as vehicles, tractors or production machinery.
• Larger or more complex transactions where a bank balance sheet helps, including fleets, marine and aviation.
• Companies that want a choice of structures, for example contract hire for cars alongside hire purchase for plant.

It may be less suitable if:

• The business is newly formed or has recent adverse credit. A specialist lender may look more closely at the story.
• You need a decision on an unusual or very old asset quickly.
• You are a sole trader looking for a small amount, where a smaller lender may be more flexible.

04What Lombard looks at

As with most bank owned asset lenders, expect a thorough credit process. Typical information requested for an asset finance application includes:

• A supplier quote or invoice with full details of the asset.
• Filed accounts and, for larger deals, recent management accounts.
• Business bank statements.
• Details of directors or owners and any existing finance agreements.
• For refinancing or sale and leaseback, evidence of ownership and an asset valuation.

The lender will weigh the strength of the business against the quality of the asset. The more the asset holds its value, the more comfortable any funder tends to be.

05Pros and cons

Pros

• Part of NatWest Group, with a long history in asset finance.
• Very broad range of structures, including contract hire and residual value leases.
• Covers specialist sectors such as marine, aviation and renewable energy.
• Able to handle very large transactions as well as smaller ones.
• Works with brokers as well as directly.

Cons

• Bank credit standards can be stricter than those of specialist lenders.
• Start ups and businesses with adverse credit may struggle.
• A larger organisation can mean a more formal process for unusual cases.

As with most bank owned asset lenders, expect a thorough credit process.

06Applying through a broker vs going direct

If you already bank with NatWest, it can feel natural to go straight to Lombard. Sometimes that is the right answer. But asset finance pricing and structure vary a great deal between funders, and the best deal on a tractor is not always the best deal on a fleet of vans.

We compare Lombard with other banks and specialist asset lenders, choose the structure that fits how you want to own or use the asset, and present your case to the lenders most likely to approve it. One enquiry, several lenders considered. It is free to enquire; any broker fee is disclosed separately before you proceed.

Try our Instant Quotes tool to compare lenders in minutes.

07Alternatives to Lombard

• Close Brothers: a major independent asset lender, often more flexible on used kit and on businesses with a shorter track record.
• Novuna: a large non bank asset finance provider worth comparing on vehicles and equipment.
• NatWest: Lombard's sister business for loans and wider banking, if you need a loan or overdraft alongside asset finance.

To understand the main structures before you decide, read our guides to business hire purchase, finance leases and operating leases, or our overview of asset finance.