Praetura review: asset finance and asset based lending for UK businesses

Praetura is a North West finance group whose lending arms include Praetura Asset Finance and Praetura Commercial Finance. Between them they cover equipment and vehicle finance, asset refinance and asset based lending for small and medium sized businesses. Smart Funding Solutions is an independent broker that can compare Praetura with other asset finance and secured lenders to see whether it is the strongest option for your deal. You can read more on Praetura's own website.

01About Praetura

The Praetura group has its head office in Blackburn, Lancashire. Its group website lists several finance businesses: Praetura Asset Finance, Praetura Commercial Finance and Praetura Invoice Finance, alongside other group companies including Kingsway Finance. Each operates under its own brand.

Praetura Asset Finance is based at Walker Park in Blackburn. It describes its aim as helping UK businesses survive and thrive, and says it works in partnership with brokers and intermediaries rather than mainly selling direct.

Praetura Commercial Finance is based in Wilmslow, Cheshire, and describes itself as an independent asset based lender for SMEs, run by entrepreneurs for entrepreneurs. Its published deals include management buyouts, buy-ins and refinancing for manufacturing and engineering businesses.

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

02What Praetura funds

Product	What it is for
Hire purchase	Buying vehicles, plant, machinery and other equipment, owning it at the end
Finance lease	Using equipment for a fixed period without taking ownership
Asset refinance	Releasing cash from equipment the business already owns
Secured business loans and asset based lending	Term loans against plant, property or cash flow, invoice discounting and stock funding

The asset finance side covers the classic asset finance products. Its refinance product is useful if you have equipment that is paid off, or partly paid off, and want to turn some of its value back into working capital. Our guide to asset refinance explains how that works.

The commercial finance side lists confidential invoice discounting, a stock revolver, plant and machinery term loans, property term loans and cash flow term loans. Combined, these form an asset based lending facility, where the amount you can borrow is linked to the value of your debtors, stock, equipment and property.

03Who Praetura suits (and who it may not)

Praetura is a good match for established trading businesses with real assets to fund or borrow against.

• Manufacturers, engineers and contractors buying or refinancing plant, machinery and vehicles.
• Businesses with healthy balance sheets that want to unlock cash tied up in debtors, stock or equipment.
• Management teams buying a business, where an asset based facility can support an MBO or MBI. See our page on management buyout finance.
• Larger deals: cases where specialist underwriting matters.

It is less likely to suit very small borrowing needs, start ups with no trading history, or businesses with few tangible assets, such as consultancies and online services. For those, unsecured lenders or soft asset specialists are usually a better starting point.

04What Praetura looks at

For asset finance, lenders like Praetura typically look at:

• The asset itself: what it is, its age, value, expected life and resale market.
• Supplier quotes or invoices, and for refinance, proof of ownership and any existing finance.
• Recent filed accounts and management accounts.
• Bank statements and evidence of affordability.
• Director background and credit history, and whether a personal guarantee is needed.

For asset based lending, expect a deeper review: an aged debtor and creditor list, stock reports, asset valuations, cash flow forecasts and, for acquisitions, details of the deal structure. A clear plan for how the money will be used and repaid helps any credit team.

05Pros and cons

• Pro: covers both equipment finance and wider asset based lending within one group.
• Pro: appetite for larger deals, including acquisitions and refinancing.
• Pro: asset refinance can release cash from equipment you already own.
• Pro: works closely with brokers and intermediaries.

• Con: secured lending means your assets, and sometimes property, are at risk if repayments are missed.
• Con: asset based facilities involve more paperwork and ongoing reporting than a simple loan.
• Con: less suited to small amounts or businesses without tangible assets.
• Con: personal guarantees are commonly requested on asset finance.

06Applying through a broker vs going direct

Praetura Asset Finance says it works with brokers and intermediaries, so a broker route is normal for this kind of lender. For asset finance and asset based lending in particular, how a deal is structured makes a big difference: the split between hire purchase and lease, the deposit, the term, and whether refinancing other equipment at the same time makes sense.

We look at the whole picture, search the market and approach suitable lenders with a properly presented case. That means one application from you and a clear comparison of the options. It is free to enquire; any broker fee is disclosed separately before you proceed. If you want a quick sense of what is available, try our instant quotes tool to compare lenders in minutes.

07Alternatives to Praetura

• Close Brothers: a large asset finance lender worth comparing on vehicles, plant and machinery, particularly for well established businesses.
• Time Finance: offers asset finance alongside invoice finance and loans, which can suit smaller businesses wanting several products from one provider.
• Ultimate Finance: a good alternative for asset refinance and invoice finance where the business needs flexible working capital.