Last updated: 03 Sep 2026

FINANCE YOUR BUSINESS ASSETS

Asset finance for your business

Asset finance spreads the cost of vehicles, equipment and machinery across fixed monthly payments, so you don't need to pay for them upfront.

  • Borrow from £1,000 to £2 million, secured against the asset itself

  • Spread repayments over terms from 3 months to 10 years

  • Keeps cash free for stock, wages and other costs, instead of one large purchase

Why get asset finance with Capitalise?

  • 200,000+ UK businesses trust us

  • Business credit data powered by Experian

  • £2bn in funding approved

  • FCA regulated since 2016

What is asset finance?

Asset finance is a way to fund the vehicles, equipment or machinery your business needs, without paying the full cost upfront. The agreement is secured against the asset itself, so a lender lends against what you're buying rather than asking for other business assets as security.

Repayments are usually spread across fixed monthly instalments over a term you agree upfront. Because the asset backs the borrowing, lenders may place less emphasis on your business credit score than they would on an unsecured loan.

What can you finance with asset finance?

Asset finance covers most physical business assets, though what a lender will fund, and on what terms, depends on how easily that asset holds its value. Hard assets are the easiest to finance, since they hold their value well and are simple for a lender to resell if something goes wrong. These include:

  • Cars, vans and heavy goods vehicles

  • Plant and machinery, including construction and agricultural equipment

  • Print, packaging, and waste or recycling equipment

  • Buses and coaches

Soft assets, such as office equipment and IT hardware, are harder to finance because they lose value quickly. Lenders that will fund them typically ask for a bigger deposit or a shorter term.

Why use asset finance?

  • Get equipment faster

    Buying an asset outright can mean waiting to save the cash, or turning down work while you wait. Asset finance lets you put vehicles, machinery and equipment to work straight away.

  • Protect your cash flow

    Spreading the cost across fixed monthly payments keeps working capital free for stock, wages and day to day running costs, rather than tying it up in one purchase.

  • Reduce your tax bill

    Repayments on qualifying asset finance can be offset against your profit before tax, and the Annual Investment Allowance lets you claim up to £1 million in capital allowances on qualifying equipment in the year you buy it.

How much can you borrow with asset finance?

How much you can borrow, and over what term, depends on the asset and your business's circumstances, though our panel covers a wide range.

Amount you can borrow

£1,000 to £2 million

Repayment term

3 months to 10 years

Security

The asset you're financing, rather than other business assets

Ownership at the end

Depends on the finance type you choose

Use the calculator below to see what your monthly repayments could look like, based on the amount, term and asset you have in mind.

Use our asset finance calculator

Enter the loan terms below to see your estimated repayments.

How much do you want to borrow?

£

How long do you want to pay your loan back for?

What is the annual interest rate?

Loan amount£50,000
Total interest£3,725
Annual interest rate7%
Monthly interest rate0.583%
Daily interest rate0.0192%
Factor rate1.0745
Flat rate3.72%
Effective APR7.00%
Daily repayment£74.62
Annual repayment£26,862

£2,239 monthly repayment

What types of asset finance are available?

  • Hire purchase (HP)

    You pay a deposit, then fixed monthly instalments until your final payment. You own the asset once that final payment is made, so this suits you if you want to own it outright.

    Learn more about hire purchase

  • Finance lease

    You pay to use the asset over an agreed term, with an option to sell it on at the end. You don't own it unless you take that sale option, which keeps your costs lower than hire purchase if you're happy to rent rather than own.

    Learn more about finance leasing

  • Operating lease

    You pay to use the asset much like you would with a finance lease, but usually for less than its working life, and you don't own it at the end. This suits you if you upgrade equipment often, or don't want a full term commitment.

    Learn more about operating leases

  • Contract hire

    You pay a fixed monthly rental based on the asset's value and its expected value at the end. This is mainly used for vehicles, which you return at the end of the agreement, so it works well if you're financing a fleet.

    Learn more about contract hire

  • Refinancing

    You release cash tied up in assets your business already owns or is still paying for. What happens to ownership depends on your existing agreement, and this suits you if you want to free up working capital from assets you already have.

    Learn more about refinancing

What are the advantages and disadvantages of asset finance?

  • Advantages

    • Spreads the cost of an asset over its useful life, instead of one large upfront payment

    • Rates and repayments are usually fixed, so budgeting is straightforward

    • Frees up cash for stock, wages or growth

    • Some agreements include maintenance, so upkeep costs may fall to the lender rather than your business

    • Qualifying repayments can reduce your tax bill

  • Disadvantages

    • The lender can repossess the asset if you fall behind on payments

    • With some agreement types, your business is responsible for maintenance and insurance

    • You don't own the asset until the final payment, or at all with some finance types

    • Assets like vehicles and machinery depreciate over time

    • Some lenders ask for a deposit before releasing funds

Who is asset finance for?

Asset finance suits any business that needs vehicles, machinery or equipment without tying up cash in a single purchase. It's particularly useful if:

  • Your business has limited cash flow and can't fund a large purchase outright

  • You're scaling up and need more equipment or vehicles to take on extra work

  • You're a startup and want to preserve working capital for other costs

  • You're replacing or upgrading equipment you already rely on

Because the asset itself secures the funding, it can also work well for businesses with a limited credit history, since lenders may weigh the asset's value alongside your credit profile rather than relying on it alone.

What do you need to qualify for asset finance?

Most lenders on the Capitalise panel base a decision on your business and the asset together, so qualifying usually comes down to a mix of the following.

  • Being an actively trading UK business, sole trader, partnership or limited company

  • A business credit score that shows you manage existing borrowing well, though some lenders weigh this less heavily since the asset secures the agreement

  • Evidence your business can comfortably afford the monthly repayments

  • An asset that falls within the lender's own criteria for age, condition and value

How do I apply for asset finance?

  • Green circle with a white number "1" in the center.

    Tell us what you need.

    Let us know the asset you want to finance and how much you're looking to borrow.

  • Green circle with white number "2" in the center.

    Apply in your business's name

    Share some details about your business and any required documents so lenders can assess your application.

  • Green circle with the white number 3 in the center.

    Get matched and funded

    A dedicated funding specialist takes your application to the lenders on our panel best suited to your business, and supports you through to completion.

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Find asset finance for your business with Capitalise

Tell us about the vehicle, machinery or equipment you need to finance, and apply for asset finance through Capitalise. We'll match your application to the most suitable lenders on our panel of 130+ UK lenders, with a dedicated funding specialist supporting you through to completion.

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Frequently asked questions about Asset Finance