Tower Leasing review: technology and equipment leasing for UK businesses

Tower Leasing is a long established UK equipment leasing company, best known for technology finance that covers not just hardware but software subscriptions, communications, professional services and support. Smart Funding Solutions is an independent broker and is not part of Tower Leasing, so we can set a Tower Leasing proposal alongside other asset finance lenders and help you pick the most suitable deal. You can read more on Tower Leasing's own website.

01About Tower Leasing

Tower Leasing says it was established in 1989 as a funder, supported by brokerage facilities, helping companies across the UK acquire capital equipment through leasing. Companies House records show Tower Leasing Limited as an active company registered in Bracknell, Berkshire, with its business activity listed as renting and leasing of machinery, equipment and tangible goods.

Tower Leasing works with a wide range of customers, from small businesses to large corporates, and with technology vendors and resellers who want to offer finance to their own clients. It also works alongside accountants, solicitors and mortgage brokers to support their business clients. Beyond leasing, it says it can help with alternative finance such as cash flow funding, asset finance, VAT loans, property and vehicles.

02What Tower Leasing funds

The standout feature is Tower Leasing's willingness to fund the whole of a technology project. Many lenders will finance a server or a set of laptops, but are reluctant to fund software licences, installation, consultancy or ongoing support, which have no resale value. Tower Leasing says it can finance every aspect of a vendor's solution, including subscription software and professional services.

Leasing usually takes the form of a finance lease, where you pay to use the equipment over a fixed period rather than buying it outright. Tower Leasing highlights that leasing can bring tax benefits, as lease payments are often treated as a business expense. Speak to your accountant about your own position.

03Who Tower Leasing suits (and who it may not)

Tower Leasing is likely to suit:

• Businesses upgrading IT, phone systems or software and wanting to spread the cost. Our guide to IT company finance covers related options.
• Projects where much of the cost is software, installation or services rather than physical kit.
• Technology resellers and software companies that want to offer leasing so customers do not have to pay cash upfront.
• Telecoms and communications projects, as covered in our telecoms business finance guide.
• Smaller purchases, where a specialist is often quicker than a bank.

It may not be the best fit if:

• You need to finance heavy plant, vehicles or machinery, which suit hard asset lenders better.
• The deal is large, as soft asset funders often cap their exposure on items with little resale value.
• You want to own the equipment at the end, in which case equipment finance on hire purchase may suit better.

The standout feature is Tower Leasing's willingness to fund the whole of a technology project.

04What Tower Leasing looks at

Tower Leasing does not publish detailed criteria. For small ticket technology leasing, lenders typically look at:

• A supplier quote or proposal showing what is being supplied, including any software and services.
• How long the business has been trading, and its recent accounts or bank statements.
• Credit checks on the business and its directors.
• A personal guarantee from directors, which is common for this type of lending.
• The supplier's standing, particularly for software and services that cannot be repossessed and resold.

05Pros and cons

• Pro: specialist in technology finance, including software and services.
• Pro: long track record, established since 1989.
• Pro: vendor and reseller programmes help suppliers win deals.
• Pro: serves businesses from small firms to large corporates.

• Con: focused on soft assets, so less relevant for vehicles and heavy plant.
• Con: little published detail on deal sizes or criteria.
• Con: leased equipment is not owned by you at the end unless agreed separately.
• Con: soft asset finance usually costs more than finance secured on assets with strong resale value.

06Applying through a broker vs going direct

If your supplier offers Tower Leasing at the point of sale, it is still worth comparing. Technology and soft asset finance varies a lot in term, end of lease options and the total you repay. We search the market, present your purchase to suitable asset finance lenders, which may include Tower Leasing, and lay the offers out side by side. One application covers the search. It is free to enquire; any broker fee is disclosed separately before you proceed. To check your options quickly, use our Instant Quotes tool.

07Alternatives to Tower Leasing

• White Oak: funds both soft and hard assets, with higher limits, and also offers business loans.
• PEAC Solutions: worth comparing for technology and vendor finance programmes.
• Rivers Leasing: another small-ticket equipment leasing specialist worth comparing on lower value deals.

Read the lease terms carefully, especially what happens at the end of the term. You can check any firm on the FCA Register.