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Compare Asset Finance

Loans for businesses of every size and industry, from top UK lenders including:

4 providers

Commission earned affects the table sort order. Other products may be available. Find out more

  • Funding Options by Tide logo
    Broker

    Funding Options Asset Financing

    • Lease, Hire Purchase or Asset Refinance options available
    • Minimum annual turnover
      £50,000
    • Available amounts
      £10,000 - £15,000,000
    • UK Available terms
      6 months - 6 years
  • Fundably logo
    Broker

    Fundably Unsecured Business Loans

    • Flexible business loans from 1 month to 5 years
    • Minimum annual turnover
      £100,000
    • Available amounts
      £1,000 - £2,000,000
    • UK Available terms
      1 month - 5 years
  • Binq Business Limited logo
    Broker

    Binq Business Loans

    • Instant loan matches - Search hundreds of lenders in minutes with just one click
    • Your free AI business advisor - Get funding advice, financial insights, and unbiased answers - ask it anything!
    • Stay in control 24/7 - Always-on AI chat interface + expert humans when you need them
    • Minimum annual turnover
      £100,000
    • Available amounts
      £25,000 - £10,000,000
    • UK Available terms
      12 months - 10 years
  • Swoop Funding logo
    Broker

    Swoop Funding Asset Finance

    • Funding to help you access equipment, machinery or vehicles
    • Confidently acquire the business assets you need to grow and operate both efficiently and effectively
    • Enables you to buy or lease equipment
    • Minimum annual turnover
      £50,000
    • Available amounts
      £5,000 - £50,000,000
    • UK Available terms
      3 months - 10 years
  • Suppliers that don't offer Business Asset Financing but may offer suitable alternatives:

      • Barclays logo

        Barclays

        • Flexible borrowing for your business - unsecured (up to £100,000) and secured loans available
        • Fixed interest rates available on all loans, plus variable interest rates for loans over £25,000
        • Subject to application, financial circumstances and borrowing history. Eligibility criteria applies
        • Minimum annual turnover
          No minimum
        • Available amounts
          £1,000 - No max
        • UK Available terms
          12 months - 25 years
      • 2 more from Barclays
      • iwoca logo

        iwoca

        • Flexible finance for small businesses from £1,000 to £1,000,000
        • No long-term commitments and flexible repayments to fit your business
        • Apply online in minutes for a quick decision (some may take up to 24 hours). Applying won’t affect your credit score
        • Minimum annual turnover
          £10,000
        • Available amounts
          £1,000 - £1,000,000
        • UK Available terms
          0 months - 2 years
      • 2 more from iwoca
    • YouLend logo

      YouLend Cash Advance

      Credit/debit card sales required
      • Optimise your cash flow and make repayments in line with your sales
      • No interest rate is charged, just a one-time fixed fee
      • Minimum annual turnover
        £36,000
      • Available amounts
        £3,000 - £1,000,000
      • UK Available terms
        1 - 18 months

Our comparison service features a selection of providers from whom we receive commission. This table is initially ordered according to our commercial arrangements. Use the sorting options at the top of the comparison table to order by other criteria.

What is a business loan?

A business loan is a form of finance that can be used to help support and expand your organisation.

As with personal loans, you borrow a sum of money, and pay it back, with interest.

One of the most important differences between personal loans and business loans is that with a personal loan, you will be personally liable for repaying the amount you have borrowed.

With a business loan, as long as the appropriate company structure is in place, that responsibility falls to the business instead. This will not be the case, however, if you are a sole trader, or you have secured your business loan with a personal guarantee.

You can also typically borrow more through a business loan, while the interest payments on your business loan may be tax deductible unlike payments on a personal loan.

Types of business loan

Secured business loans

Secured business loans require that you put down an asset such as property as security. Secured loans often come with lower interest rates than unsecured loans as they represent less risk for the lender. They may also give you access to a larger loan amount over a longer term. However, secured loans come with the added risk that you could lose your assets if you miss the payments.

Unsecured business loans

Unsecured business loans are a type of finance that does not require security. These types of loans tend to have higher interest rates because there is a greater risk of the lender losing money if you can't pay off what you owe. Unsecured business loans also require a good financial history and credit rating as evidence that the business will be able to repay the loan.

Government loans

There may be government-backed business loans you can access. Examples include the Recovery Loan Scheme, introduced to help with the financial stresses caused by the Covid-19 pandemic, which has now been extended. What schemes are available can vary depending on government policy and changing economic circumstances across the country. So it can be useful to regularly check the Department for Business, Energy & Industrial Strategy's search tool for guidance on the business loan schemes available in your region.

Start up business loans

The Start Up Loan Scheme is a government-backed fund that currently offers personal loans of up to £25,000 to UK businesses owners that have been fully trading for less than 36 months or those looking to start a business. You can apply for free, and there are no early repayment charges. If your application is successful, you'll also get up to 12 months of free mentoring. Government Start Up Loans have a fixed annual interest rate of 6% and must be repaid over a period of one to five years.

Small business loans

Small business loans are for start ups and small businesses to access funding. They can be used for a variety of purposes from hiring new staff to managing cash flow. As with all loans, small business loans are repaid over an agreed time period with interest. Large business loans tend to be cheaper than small business loans because there is less perceived risk with lending to a bigger company.

Asset finance explained

Asset finance is a type of loan used by a business to buy expensive assets such as machinery, company cars or IT equipment, without overstretching its financial limits. The business pays a regular amount to use the asset over an agreed period, rather than spending a large lump sum in one go to buy it outright.

An asset finance loan might be considered an alternative to other business funding options, such as overdrafts and bank loans.

Pros and cons of asset financing

  • You can get high-value assets without spending a large amount upfront.
  • You may get a quicker decision and better rates than more traditional lending routes.
  • Repayments are usually fixed, which can help with long-term budgeting.
  • The lender may take care of servicing and maintenance of the asset.
  • It is possible to rent the latest, high-spec equipment for a short time, rather than its whole working life.
  • The asset’s depreciation, and if it stops working, is usually the provider’s concern.
  • There is often flexibility over the contract term and repayment structure.
  • There are super-deduction tax benefits if your company pays corporation tax and invests in qualifying plant and machinery.

For all the potential benefits of asset finance, it isn’t right for every business.

You’ll need to make sure you can make the regular repayments on time over the agreed term. You should also be clear on the terms of the contract, including the interest rate charged and the total amount you’ll be paying. Consider carefully if it suits your company’s financial situation before you sign an agreement.

It’s worth knowing that:

  • If you miss a payment or default on the loan, the lender will usually take back the equipment and this could affect your business operations.
  • With leasing finance or a hire contract, you’ll pay for an item you might never end up owning.
  • It may not be a short-term fix, as terms usually last from one to seven years. Although for very expensive assets, longer terms may be offered.
  • It can end up costing more than if you had bought the asset outright. You may also have to pay a deposit, though the asset itself is usually considered acceptable security for the loan.
  • The provider may carry out credit checks when you apply for finance, which could affect your business credit rating.
  • If you want to end your contract early, you may need to meet certain conditions, and you will usually need to pay a settlement fee.

How to apply for asset finance

You can get asset finance through a finance provider, an equipment provider or manufacturer, or a broker.

First, research the asset you want, including preferred brands and models. This will help you determine the amount you need to borrow.

When you are ready to apply, check your eligibility with that provider. Your business may need to be a limited company or limited liability partnership, and UK-based. Though some providers also welcome sole traders. Your business may also need to have a minimum trading time or annual turnover and a good credit history.

Like any business loan, you will need to provide documents to prove your eligibility and show that your business can make agreed repayments on time. This may include financial forecasts, bank statements and tax returns, so it’s important to get these in order before you apply.

Timescales depend on the provider, the amount you are asking for and your business structure, among other things. But some providers may approve an application and put the agreement in place within just 24 hours. If you get follow-up requests from your lender asking for additional documentation, it may affect timings.

How to compare asset finance with NerdWallet

Use our table to compare asset finance deals from a range of providers. You’ll see:

  • minimum turnover requirements
  • contract terms available
  • loan amounts available
  • minimum trading history requirements
  • if soft or hard assets are financed, or both
  • if it’s a broker, the number of suitable lenders searched through one request

Then just click on the deal for more information.

Asset Financing FAQs