Metro Bank Asset Finance review: hire purchase and refinance for UK businesses

Metro Bank Asset Finance is the asset lending arm of Metro Bank, the UK bank known for its high street stores and extended opening hours. Its team helps businesses spread the cost of machinery, vehicles and equipment, and raise money against assets they already own. Smart Funding Solutions is an independent broker and is not part of Metro Bank. Metro Bank Asset Finance is one of the lenders on our panel, so we can compare its terms with other banks and specialist lenders. You can read more on Metro Bank Asset Finance's own website.

01About Metro Bank Asset Finance

Metro Bank is a UK bank serving personal and business customers. Its dedicated asset finance team operates from its Guildford store in Surrey and lends to businesses across a range of sectors.

Metro Bank says its aim is to help businesses spread the cost of the assets they need to grow. Repayments are fixed, but it also says it can build in flexibility for businesses with seasonal cash flow, which is useful in sectors such as agriculture or tourism where income is uneven through the year.

02What Metro Bank Asset Finance funds

To be funded, an asset needs to meet what Metro Bank calls the DIMS test. It must be:

• Durable: it will last for the length of the agreement.
• Identifiable: it has a serial number or other clear identity.
• Moveable: it can be recovered if needed.
• Saleable: there is a market for it if it has to be resold.

Examples it gives include machinery, vehicles, telecoms equipment and computers. Pre-owned assets are considered but typically need an independent valuation. Our guide to used equipment finance explains what lenders look for with second-hand kit.

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

Metro Bank lists several sectors it supports:

• Agriculture.
• Bus and coach transport. See our bus and coach finance guide.
• Construction.
• Manufacturing and engineering.
• Healthcare.
• Classic and prestige cars. Our page on prestige car finance for business covers this niche.

It also says that if your industry is not listed, it may still be able to help.

Metro Bank is likely to suit you if:

• You are an established business buying a hard asset with a clear resale value.
• You want a bank lender with fixed repayments and the option of seasonal flexibility.
• You own valuable equipment outright and want to release cash through sale and leaseback.

It may be less suitable if:

• The purchase is small, where a small ticket specialist may be quicker.
• The asset is soft, such as software or bespoke fit out, and fails the DIMS test.
• Your business is very new or has adverse credit, where a specialist lender may be more flexible.
• You want a lease or contract hire rather than ownership.

04What Metro Bank Asset Finance looks at

A bank asset lender will weigh up both the business and the asset. Typical information for a hire purchase or refinance application includes:

• A supplier quote or invoice, or details of the asset you already own.
• For used assets, an independent valuation.
• Filed accounts and recent management accounts.
• Business bank statements.
• Details of directors or owners and any existing finance.
• For sale and leaseback, proof of ownership and confirmation of any outstanding finance on the asset.

Expect the bank to take an initial payment from you on a hire purchase deal. How much depends on the asset and your business.

05Pros and cons

Pros

• Backed by a UK high street bank.
• Terms of up to seven years help keep repayments manageable.
• Fixed repayments, with flexibility for seasonal businesses.
• Covers used assets, subject to valuation.
• Sale and leaseback option to release cash from owned equipment.
• Broad sector coverage, including classic and prestige cars.

Cons

• Focus on hire purchase rather than a full range of leasing products.
• Assets must meet the DIMS test, which rules out soft assets.
• Bank credit standards may be tighter than specialist lenders.
• Smaller deals may sit better with other lenders.

Expect the bank to take an initial payment from you on a hire purchase deal.

06Applying through a broker vs going direct

Asset finance is one of the most competitive parts of business lending, and the right funder depends on the asset, its age, your sector and your credit profile. One lender's view is only part of the picture.

We compare Metro Bank with other banks and specialist asset lenders, then present your proposal to those most likely to approve it on sensible terms. You give us the details once and we do the legwork. It is free to enquire; any broker fee is disclosed separately before you proceed.

Use our Instant Quotes tool to compare lenders in minutes.

07Alternatives to Metro Bank Asset Finance

• Aldermore: a specialist bank with a large asset finance business, often a close comparison for established SMEs.
• Lombard: NatWest Group's asset finance business, with a wider range of leasing structures and very large deal capacity.
• Haydock Finance: an independent lender that may suit smaller or less straightforward deals.

To compare the main structures, see our guides to business hire purchase and asset refinance.