Asset Finance for UK Businesses: Fund Vehicles, Plant & Equipment
Asset finance helps businesses purchase or refinance vehicles, plant, machinery, tools and equipment with fixed repayments spread over an agreed term. Wise Commercial Finance Limited arranges asset finance across a wide lender panel, helping UK SMEs fund the assets they need without tying up working capital.
Quick Facts
What it is
Finance secured against an asset (vehicle, equipment, machinery)
Best for
Purchasing or refinancing business assets
Typical terms
12–84 months (varies by lender and asset)
Typical amounts
£5,000 to £1,000,000+
Speed
Decisions often fast once asset details provided
Security required
Usually the asset itself
Repayment type
Fixed monthly repayments (typical)
What is asset finance?
Asset finance is a form of business funding used to purchase, hire, lease, or refinance an asset. Instead of paying the full cost upfront, the cost is spread over time through monthly repayments.
Asset finance is commonly used to fund:
- Vans, trucks and commercial vehicles
- Plant and machinery
- Tools and equipment
- Specialist machinery and engineering equipment
- IT systems and business equipment
Because the finance is usually secured against the asset, asset finance can often be an efficient way to fund growth while preserving cashflow.
What you’ll usually need
- Asset details (supplier, cost, age, mileage/hours, make/model)
- 3–6 months business bank statements
- Accounts (if available)
- ID and proof of address
- Any existing finance settlement details (if refinancing)
Types of asset finance
Asset finance can be structured in different ways depending on the asset and business needs. Common options include:
Hire Purchase (HP)
You spread the cost over time and typically own the asset at the end of the term.
Finance Lease
You pay to use the asset over time, with ownership usually staying with the finance provider.
Operating Lease
Often used for vehicles or equipment where the asset is returned at the end of the term.
Asset Refinance
If you already own an asset (or have equity in it), refinance can release cash back into the business.
Costs & pricing
Asset finance pricing depends on the asset type, age, term length, deposit (if required), and your business profile. Some deals include a balloon payment or residual value to reduce monthly cost.
Other costs may include:
- arrangement fees (depending on lender)
- documentation fees
- early settlement terms (vary by product and lender)
Wise Commercial Finance Limited helps you compare options and understand the total cost clearly before proceeding.
How asset finance works
1
You choose the asset you want to fund (new or used)
2
You provide the asset details and your business information
3
We match lenders based on asset type and your profile
4
The lender approves and issues an agreement
5
The asset is paid for, then you repay monthly
Worked examples (estimates)
Example 1 — Van finance for a trades business
A business funds a £15,000 van over 48 months with fixed monthly repayments, protecting cashflow and keeping reserves for materials and wages.
Example 2 — Plant finance for construction equipment
A business funds £60,000 of plant or machinery over 60 months to take on larger projects and spread the cost over time.
Example 3 — Equipment refinance to release working capital
A business refinances owned equipment to release cash back into the business while continuing to use the equipment.
Eligibility
Asset finance may be available for:
- Limited companies, sole traders and partnerships
- New and established businesses
- Many sectors including construction, transport, engineering and manufacturing
- Applicants with or without large deposits (depending on lender and asset type)
Eligibility is influenced by asset type, business profile, affordability and credit, and the lender’s criteria.
Benefits and alternatives
Benefits
- Preserve cash reserves and working capital
- Fixed repayments and clear terms
- Often secured against the asset
- Fund new or used assets
- Can support growth without reducing cashflow flexibility
Alternatives
- Business loan
- Overdraft
- Leasing vs hire purchase alternatives
- Buying outright (if cash reserves allow)
- Rental/hire (for short-term usage needs)
Frequently Asked Questions
Can I finance used vehicles or used equipment?
Can I finance used vehicles or used equipment?
Yes. Many lenders offer asset finance for used vehicles, plant and equipment. The asset’s age, condition, mileage/hours and value may affect lender appetite and pricing. Some lenders also place limits on asset age at the end of the agreement.
If you’re buying from a dealer or specialist supplier, this can often strengthen the application.
Do I need a deposit for asset finance?
Do I need a deposit for asset finance?
Not always. Some lenders may require a deposit depending on the asset type, your business profile and affordability. Others offer 100% funding (or near 100%) on suitable assets, particularly where the asset retains value and the risk profile is strong.
We can advise on realistic deposit expectations based on your situation.
What’s the difference between hire purchase and leasing?
What’s the difference between hire purchase and leasing?
- Hire Purchase (HP): you typically own the asset at the end of the term after all repayments are made (and any option-to-purchase fee if applicable).
- Leasing: you pay to use the asset over a set period. Ownership usually remains with the finance provider, and you may return the asset at the end or extend the lease depending on the agreement.
If ownership is important (for long-term assets), hire purchase is often preferred. If flexibility is key, leasing may suit better.
Can I refinance an asset I already own?
Can I refinance an asset I already own?
Yes. Asset refinance can release working capital by borrowing against assets you already own (or have equity in). This can be useful for improving cashflow, funding growth, or restructuring finance.
Lenders will typically assess asset value, ownership documentation and your business profile before approving refinance.
Can VAT be included in asset finance?
Can VAT be included in asset finance?
In some cases, yes. It depends on the lender and how the deal is structured. Some agreements fund the asset net of VAT, while others may fund the VAT amount as part of the finance facility.
We can advise on what is possible based on the asset type and your VAT status.
How long does it take to arrange asset finance?
How long does it take to arrange asset finance?
Many asset finance decisions can be made quickly, sometimes within 24–48 hours once the lender has the required details. Completion time depends on:
- How quickly documents are supplied
- The type of asset
- Whether the asset needs inspection, valuation or additional checks
If speed is critical, we’ll focus on lenders known for quicker turnaround.
Can I get asset finance with poor credit?
Can I get asset finance with poor credit?
Some lenders consider applicants with imperfect credit, but pricing and terms may differ and affordability will remain important. In these cases, the asset itself and the strength of the business can play a bigger role in approval.
We’ll advise honestly on realistic options and lender criteria.
Is asset finance better than a business loan?
Is asset finance better than a business loan?
Asset finance is often ideal when the funding relates directly to an asset (vehicle, plant, equipment), because the finance is secured against that asset and repayments can be structured around its value and lifespan. Business loans can be more flexible for general working capital but may come with different criteria and pricing.
We can help you choose the most suitable option based on purpose, affordability and timeline.
