What lenders typically weigh
For this situation, UK SME lenders typically weigh a small set of signals more heavily than others. The strength of each lever affects which lenders will look at the case and what terms you might expect:
- Asset type and resaleability
- Mainstream vehicles, vans, common machinery and identifiable plant are easiest to fund. Bespoke, single-purpose or fast-depreciating assets attract higher deposits or shorter terms.
- Asset value vs business revenue
- The asset cost should be in proportion to the business's monthly revenue and affordability. Very large assets relative to revenue need stronger affordability evidence.
- Deposit size
- Typical deposit 10–20% for established businesses; 20–30% for younger businesses or specialist kit. Higher deposits open the lender pool for non-prime cases.
- Director personal guarantee
- Almost always required for SME asset finance. Strong director PG offsets some business-level weakness.
- Trading history
- 6 months is often the practical minimum. Specialist lenders look at younger sole traders and limited companies on a case-by-case basis.
Finance types that usually fit this situation
UK lenders that often look at this situation
The lenders below publish criteria consistent with this situation. Final approval is always subject to lender underwriting.
Lombard
Asset finance / HP
- Amount
- £25k+
- Speed
- Not disclosed
- Security / PG
- Security/guarantees may be required
- Data confidence
- Medium
Novuna Business Finance
Asset finance
- Amount
- Not disclosed
- Speed
- Not disclosed
- Security / PG
- Asset-backed
- Data confidence
- High
Propel Finance
Asset finance
- Amount
- Not disclosed
- Speed
- Contact within 1 working day
- Security / PG
- Asset-backed
- Data confidence
- Medium
Grenke
Equipment finance
- Amount
- Not disclosed
- Speed
- Not disclosed
- Security / PG
- Asset-backed
- Data confidence
- Low / medium
Simply Asset Finance
Asset finance
- Amount
- £15k–£5m
- Speed
- Not disclosed
- Security / PG
- Asset-backed
- Data confidence
- High
If you can't qualify yet
If asset finance applications aren't returning offers, the most common gaps are short trading history, asset type outside lender appetite, or deposit too low. Increase the deposit to 25–30% and present a clean recent bank-statement record. For bespoke or single-purpose assets, look for specialist sector lenders rather than mainstream providers. Specialist non-prime asset finance lenders (Simply Asset Finance, Propel, Time Finance) cover cases with adverse credit at higher deposit levels. Refinancing existing assets you already own outright is another route — it releases working capital using the asset as security.
Frequently asked questions
- Can I finance second-hand equipment?
- Yes, most UK asset finance lenders fund used assets, but term length is often limited by the asset's remaining useful life. Some specialist lenders prefer assets under 5 years old; others will look at older plant with valuation evidence.
- What deposit will an asset finance lender want?
- Typically 10–20% on new equipment for an established business. Higher deposits (20–30%) are common for younger businesses, specialist or high-depreciation assets, or where director credit history is mixed.
- Can I finance multiple assets together?
- Yes. Fleet operators and growing businesses can put a facility (a credit limit) in place with the asset finance lender and draw against it as new assets are needed.
- Hire purchase or lease — which fits my situation?
- Hire purchase suits assets you want to keep (vehicles, kitchen kit, CNC machines). Lease suits assets you replace often (IT, specialist medical kit). Tax treatment differs — speak to an accountant.
- Is asset finance available with bad credit?
- Often yes via specialist non-prime lenders, with higher deposits (25–35%) and strong director PG. The asset itself reduces lender risk, so this is the most accessible route with adverse credit.