Asset finance
Finance an asset (equipment, vehicle, machinery) where the asset itself is the security. Cleaner credit position than unsecured term loans because the lender can recover the asset if things go wrong. Personal guarantee requirements are softer.
Director, FundBiz
Oliver leads FundBiz's specialty finance comparison and matching engine. With a background in UK commercial finance, he oversees lender partnerships, eligibility logic and post-decline routing.
Last reviewed: 12 June 2026
At a glance
- Ticket size
- £5,000 to £5m+
- Typical rate
- From 6.5% APR
- Term
- 2 to 7 years (asset-life dependent)
- Security
- The asset itself
- Decision
- 2 to 5 business days
- Personal guarantee
- Often softer than unsecured
- Soft search
- Yes at quote stage
Four structures
- Hire purchase (HP). You pay the asset off in instalments and own it at the end. The asset is on your balance sheet from day one.
- Finance lease. Long-term lease covering most of the asset's useful life. You account for it as an asset and a liability; you may have a purchase option at the end.
- Operating lease. Shorter lease, asset stays off balance sheet, you return it at the end. Common for vehicles and IT.
- Asset refinance. You already own the asset; the lender pays you cash secured against it, and you repay over time. Useful for releasing capital trapped in equipment.
Who it fits
- Manufacturing buying machinery.
- Construction acquiring plant.
- Hospitality investing in fit-out and kitchen equipment.
- Recruitment, professional services and tech buying IT or vehicles.
- Established Ltd companies wanting to release cash from owned equipment.
Lenders we route to
Allica Bank (asset finance and HP), Aldermore, Time Finance, BNP Paribas Leasing Solutions, Compass Business Finance, plus several specialists for soft assets (IT, software) where mainstream lenders are cautious.
Asset finance by asset type
Specific guides covering rate, term, lender shortlist and watch-outs by asset class.
Vehicles
Plant
Hospitality
Healthcare
Agriculture
Run the numbers first
Asset finance comes in four structures and an outright purchase. The cost difference shows up over the full term, not just in the headline monthly. Compare side by side, then sense-check affordability before applying.
Apply
Open asset finance eligibility checker →Last reviewed: 12 June 2026.