Asset finance

Last updated on 10 August 2023

Are you looking for the best asset finance in the UK? Whether you’re a small business owner needing help with funding, or an individual investing in major items like cars and equipment, finding specialist financial assistance can be daunting.

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But don’t worry – right here we’ll explore the leading providers available to UK customers today.

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Wallester Business
✓ Virtual & Physical Cards
✓ No Setup Fees
✓ No Monthly Fees
Pricing Trial period Contact

Revolut Business
✓ Business Current Account
✓ Award-Winning Mobile App
✓ Quick & Easy Application Process
Pricing Trial period Contact

Tide Business Bank Accounts
✓ Free, Plus, or Pro Account
✓ iOS & Android Mobile App
✓ Upload & Auto-Match Receipts
Pricing Trial period Contact

Card One Money
✓ No Credit Checks
✓ Simple Fees
✓ Up to 3.5% Cashback
Pricing Trial period Contact

ANNA Money
✓ Apply in 10 minutes
✓ Bookkeeping & Payroll Tools
✓ User-Friendly Mobile App
Pricing Trial period Contact

Co-Op Business Banking
✓ Business Current Account
✓ Online, App & High Street Banking
✓ Quick & Easy Application Process
Pricing Trial period Contact

HSBC Business Banking
✓ Business Current Account
✓ In-Branch, Online & App Banking
✓ FSCS Protected
Pricing Trial period Contact

Metro Business Banking
✓ Business Current Account
✓ High Street Presence
✓ FSCS Protected
Pricing Trial period Contact

Mettle Business Banking
✓ Business Bank Account
✓ Online & App
✓ Quick & Easy Application Process
Pricing Trial period Contact

Monzo Business Banking
✓ Business Current Account
✓ Dedicated mobile app experience
✓ FSCS Protected
Pricing Trial period Contact

Virgin Money
✓ Business M Account
✓ In-Store, Online & App Banking
✓ Insights & Forecasting Platform
Pricing Trial period Contact
Video: Business loans and finance explained

Best asset finance companies

Asset finance lenderMinimum financeMaximum financeFinance terms

365 Business Finance

£10,000£300,0004 months – 18 months

Allica Bank

£25,000£1,000,000Up to 7 years

Barclays

£1,000N/A1 year – 12 years

Bluestar Leasing

£1,000N/AUp to 7 years

Capify

£5,000£500,0003 months – 18 months

Cube Funder

£5,000£100,0003 months – 1 year

Fleximize Asset Finance

N/AN/AN/A

Funding Circle Asset Finance

£10,000£250,0006 months – 5 years

Funding Xchange

£5,000£250,0001 year – 5 years

Lombard Business Finance

£5,000£250,00012 months – 84 months

Love Finance

£5,000£500,00018 months – 5 years

Nationwide Finance

£8,000£500,0001 year – 5 years

Nest Asset Finance

£10,000£5,000,000N/A

Novuna

£10,000£500,000Up to 5 years

Previse

£25,000£2,000,0003 months – 9 months

Swoop

£5,000£2,000,0001 month – 7 years

Tide

£500£5,000,0001 month – 6 years

YouLend

£3,000£1,000,0003 months – 18 months
Best Asset Finance companies compared

What is asset finance?

Asset finance is a method of financing the purchase of assets. It’s basically an agreement between a lender and borrower in which the borrower pays off their loan with regular payments over an agreed period of time.

This type of finance can help businesses acquire equipment such as computers, software, vehicles, or machinery without having to make a large upfront payment.

This type of financing can also be used for business expansion, renovations, or other investments. Generally speaking, the lender is typically a financial institution such as a bank or leasing company that agrees to provide the loan and takes ownership of the asset being purchased in order to secure the loan. The borrower is then obligated to make regular payments until it fully pays off the loan.

How does asset finance work?

Asset finance works by allowing businesses to borrow money for the purchase of assets. The lender takes ownership of the asset and then lends it back to the borrower, who makes regular payments on the loan until it is paid off.

What are the benefits of asset finance?

Some of the main benefits of this form of loan include:

  • Increased flexibility – This finance allows businesses to acquire assets without having to make large upfront payments. This makes it easier for companies to manage cash flow and invest in other areas of their operations
  • Improved liquidity – It can help businesses free up working capital that would otherwise be tied up in purchasing assets
  • Lower costs – This kind of loan is usually cheaper than traditional financing due to the lower interest rates and lowered risk associated with secured loans
  • Tax benefits – Businesses may also be eligible for tax deductions on the interest paid on their loan

FAQ

Why would a company go to an asset finance firm instead of a bank?

There are several reasons a company might choose to go to an asset finance firm instead of a bank. Some firms specialise in this type of financing, and therefore can provide tailored solutions for businesses.

These companies may also be able to offer more competitive rates than those offered by banks or other financial institutions. Furthermore, these firms can often provide more flexible terms, such as the ability to pay off a loan early without penalty.

How much does asset finance cost?

The cost of asset finance depends on several factors, such as the type of asset being financed and the terms of the loan. Generally speaking, however, it’s usually cheaper than traditional financing due to the lower interest rates associated with secured loans.

The lender may also charge additional fees for processing or other services. It’s important to research and compare different providers to ensure you get the best deal.

Who is eligible for asset finance?

This type of loan is typically available to businesses of all sizes, ranging from sole traders and small businesses, to larger companies. However, eligibility can vary depending on the lender.

Generally speaking, businesses must meet certain criteria such as having a good credit rating and a positive cash flow. Some lenders may also require collateral such as property or other assets in order to secure the loan.

How to choose an asset finance provider?

When choosing a lender of this type, it’s important to do your research. Compare different lenders and their offerings to find the best deal for your business. Consider factors such as interest rates, repayment terms, fees, customer service and any additional benefits that may be available.

You should also check whether the lender is regulated by a governing body or authorised by the Financial Conduct Authority (FCA). This will give you peace of mind that your funds are secure with a trusted provider.

Finally, always make sure to read through the loan agreement carefully and be aware of any hidden costs or fees before signing. Doing your due diligence can help ensure that you get the best possible deal for your business.

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Reviewed by , Managing Director

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