Novuna review: asset finance and invoice finance for UK businesses

Novuna is the business finance brand of Mitsubishi HC Capital UK PLC, best known for asset finance such as hire purchase and leasing, with a separate arm for invoice finance. Novuna is one of the lenders on our panel. As an independent broker, we can compare a Novuna proposal with other asset and invoice finance lenders so you can judge it against the wider market. You can read more on Novuna's own website.

01About Novuna

Novuna says it has more than 40 years of history in business finance, has funded over £5bn to UK companies and has supported thousands of SMEs across more than 50 industries. It operates under two main names that matter for business owners:

• Novuna Business Finance: asset finance, project finance for sustainable energy schemes, stock finance, block discounting and finance through dealers and intermediaries.
• Novuna Business Cash Flow: invoice finance, including factoring and invoice discounting. It says it provides over £2bn to more than 1,000 SMEs each year, and that it can also draw on other funding partners beyond its own products.

Novuna puts particular emphasis on sustainable funding, from renewable energy equipment to projects for community energy groups. Smart Funding Solutions is an independent broker and is not part of Novuna or Mitsubishi HC Capital UK PLC.

02What Novuna funds

Product	What it is for	Typical size	Typical term
Hire purchase	Buying equipment or vehicles and owning them at the end	Case by case	Depends on the asset
Leasing	Using an asset for a fixed period without owning it	Case by case	Depends on the asset
Asset refinance	Raising cash against equipment you already own	Case by case	Depends on the asset
Invoice factoring and discounting	Releasing cash tied up in unpaid invoices	Case by case	Ongoing facility

On the asset side, Novuna lists a broad range of assets: transport and logistics vehicles, manufacturing machinery, technology and IT, healthcare equipment, agricultural machinery, garage equipment and green energy assets. With hire purchase you pay in instalments and own the asset at the end; with a lease you use it for an agreed period. If your equipment is already paid for, asset refinancing can release some of its value as cash.

Novuna Business Cash Flow says it can start boosting a business's cash flow within 24 to 72 hours. Its sector pages cover construction, commercial property, ecommerce, hospitality, manufacturing, recruitment, retail and transport. If you are new to it, our guide to invoice factoring explains how a facility works day to day.

03Who Novuna suits (and who it may not)

Novuna's asset finance page sets out clear basic criteria. Businesses should be:

• based in the UK
• a limited company, PLC, LLP, sole trader or partnership
• trading for at least three years
• looking for hire purchase or leasing

That makes Novuna a natural fit for an established business replacing or adding equipment, a haulier adding vehicles, or a firm investing in solar panels, battery storage or other green assets. Larger and more specialist deals, including sustainable energy projects, are handled by its project finance team.

It is less likely to suit a business with under three years of trading, or one that simply wants a cash loan, since Novuna states it does not currently offer business loans through its asset finance division. Newer businesses needing equipment may find other asset finance lenders more flexible.

04What Novuna looks at

For asset finance, lenders typically want to know what the asset is, who is supplying it, its expected working life and how the business will afford the repayments. Expect to provide:

• a supplier quote or invoice for the asset
• recent filed accounts and, for larger deals, management accounts
• business bank statements
• details of the directors or owners and any existing finance

For invoice finance, the focus shifts to your sales ledger: who your customers are, how quickly they pay, your payment terms and how concentrated your debtors are. A personal guarantee from directors is common on both types of facility.

05Pros and cons

Pros

• Backed by a large, long-established finance group.
• Wide range of asset types, including green and renewable equipment.
• Asset finance and invoice finance available under one brand.
• Accepts sole traders and partnerships as well as companies for asset finance.

Cons

• Minimum three years of trading for asset finance rules out younger businesses.
• No standard business loans through its asset finance division.
• Larger, well-known lenders can be less flexible on unusual cases.
• Directors may be asked for personal guarantees.

For asset finance, lenders typically want to know what the asset is, who is supplying it, its expected working life and how the business will afford the repayments.

06Applying through a broker vs going direct

Novuna works directly with businesses as well as through dealers and brokers. Going direct is fine if you already know Novuna is the right fit. The value of comparing first is that asset finance pricing and structure vary widely between lenders, and the finance offered by an equipment supplier is often not the most competitive.

When you enquire with us, we look at the asset, your accounts and your plans once, then search the market across more than 300 lenders, including Novuna. We approach the lenders best suited to the deal and lay out the options clearly. It is free to enquire; any broker fee is disclosed separately before you proceed. To get started, use our Instant Quotes tool to compare lenders in minutes.

07Alternatives to Novuna

• Paragon Bank: a specialist bank offering both asset finance and invoice finance, worth comparing for more structured or complex cases.
• Time Finance: offers asset finance and invoice finance and may be a better fit for smaller SMEs.
• Close Brothers: a long-standing asset finance lender with sector specialists, useful where the asset or business is less standard.