Asset finance for UK businesses
Asset finance lets your business get vehicles, machines or equipment now. You pay for them over time.
- We are a broker, not a lender.
- We can ask over 120 lenders for you.
- There is no fee to apply.
- Our FCA number is 1058283. We are members of the NACFB.
Get the free asset finance checklist
Written by Martin Mackenzie, Sales Director. Checked .
Read the film's words
Asset finance. In this video we are going to discuss asset finance. It lets your business get vans, machines or equipment now. Then your business pays for them over time. The asset backs the finance. If your business stops paying, the lender can take it back. There are three main types of asset finance. Hire purchase is for buying an asset to keep. The lender owns it until it is paid off. A finance lease is for using an asset without owning it. And asset refinance raises cash from what your business already owns. Most finance runs for two to five years. We arrange it from one year up to seven. Diggers, tractors and farm machines keep a lot of their value. Most lenders like them. Shop fittings and cleaning equipment lose their value sooner. Fewer lenders take them. But they can still be financed. New or used. From a dealer, another business, a private seller or an auction. The seller must show it is theirs. We are a broker, not a lender. We find the lender for you. One lender may say no. Another may see your case in a different way. Lenders often want to see three months of business bank statements. And your latest year end accounts. Is your business new? Then a short plan helps too. And photo ID for each director. Our page has a free checklist of what lenders ask for: fill it in, then print it. Apply online with Donnie, our AI agent, 24/7. Or call our team on 01463 652 653. Thanks for watching!
What is asset finance?
It works like buying a car on finance. If the payments stop, the lender can take the asset back. Some lenders also ask a director for a personal guarantee.
Most agreements last 2 to 5 years. We arrange them from 12 months up to 7 years.
What can you finance?
Almost any asset that holds a value can be financed. That covers equipment finance and machinery finance too.
Hard assets keep a lot of their value. Think vehicles, plant, tractors and farm machines, boats and factory machines. Most lenders like them.
Soft assets lose value fast. Think computers, shop fittings, and catering or cleaning equipment. Fewer lenders take them, but they can still be financed.
New or used, from any seller who can prove the asset is theirs. That can be a dealer, another business, a private seller or an auction.
What are the types of asset finance?
There are three main types. Hire purchase is for buying. A finance lease is for using. Asset refinance raises cash from what you already own.
| Hire purchase | Finance lease | Asset refinance | |
|---|---|---|---|
| What it is for | Buying an asset to keep | Using an asset without owning it | Raising cash from an asset your business owns |
| Who owns it | The lender, until the last payment | The lender, all the time | The lender, until the last payment |
| At the end | A small fee, then it is yours | You can keep using it, usually for a small yearly rental | A small fee, then it is yours again |
| VAT | Pay it at the start, or the lender pays it for now | A bit each month, with each payment | Ask your accountant first |
Most of the agreements we arrange are hire purchase. Want to use a vehicle and hand it back at the end? That is contract hire, a kind of operating lease. We can arrange it too.
Buying from another business, not a dealer? See private sale finance. Need money for something that is not an asset? See business loans.
How does asset finance work with a broker?
A broker finds the lender for you. Here is what happens, step by step.
- Apply online with Donnie, our in house AI agent, or call us. Applying is not a credit search.
- A person in our team reads your application. We get back to you within a day.
- If you want to go ahead, you sign a consent form. Then we run a light credit check on the company, often known as a soft search. We choose the lenders that suit your case, and send each one a full written case, called a proposal. Each lender then does its own credit check.
- We tell you what the lenders say. If finance is approved, we send you a quote with the figures. Then we take you through signing the finance documents.
- If you are buying an asset, you arrange to collect it from the supplier. For a refinance, the money is paid into your bank account.
If one lender says no, do not take it as the last word. Another lender may see your case in a different way.
Who can get asset finance, and how much?
At Mackenzie Commercial Finance, we broker asset finance for limited companies and LLPs from £15,000. For sole traders and partnerships, it is over £25,000.
For less than that, please speak to us before you apply. For sole traders and partnerships, we only arrange that in person, at our office, in the IV postcode area.
We set no top limit of our own. Lenders set different limits, and a few have no hard limit. With over 120 lenders, we can spread a big need across several.
Most lenders look for a deposit of 5 to 10%. No deposit at all is possible, and quite common.
To raise cash from an asset you own, most lenders lend up to 80% of what it is worth. Some lenders on our panel go up to 100%.
Will I need to give a personal guarantee?
Some lenders ask a director to give a personal guarantee for asset finance. That is a promise to pay if the business cannot. The director then has to pay what is owed from their own money. In the end, that could put their home at risk. We tell you before you sign if a lender asks for one.
Can a new business get asset finance?
Yes, in most cases, when the plan stands up. Lenders look at how the business is funded, and how it will win work. Owning your home helps, but it is not a must. Fewer lenders take new businesses, so do not expect an instant yes. Our free business plan template puts your plan in the shape a lender reads.
What if I have bad credit?
Many people told they have bad credit get finance with no problem. It is often about how the case is set out for the lender. We never promise a yes, but we will tell you straight.
What does asset finance look like in real life?
Here is a real hire purchase agreement our team set up. It shows every figure except the rate, because each lender sets its own.
A real example of a hire purchase agreement completed by Mackenzie Commercial Finance
Completed by Martin Mackenzie, September 2026.
These are real figures from a real agreement we completed for a customer. The customer was a limited company buying a used asset from a dealer.
- Price
- £43,998 including VAT
- Deposit
- £8,799.60 (20%)
- How many months
- 60
- Monthly payment
- £714.38
- Documentation fee
- £280
- Option to purchase fee
- £80 + VAT
- Total cost of finance
- £8,024.40
- Total amount paid
- £52,022.40 (+ VAT on the £80 fee)
This was business finance for a company. It was not regulated consumer finance. Every case is different. This is not a quote.
What should I get ready before I apply?
Lenders ask about two things: your business, and the asset. This free checklist has both. Fill it in, then print it or save it as a PDF. Nothing you type here is sent to us.
How do you get paid, and what does the finance cost?
The lender pays us a commission, only once your finance is in place. There is no fee to apply, and no fee up front. Apply by phone, by email, or online with Donnie, our in house AI agent, in under 5 minutes.
If you stop before your finance is in place, you owe us nothing, unless you agreed the rare inspection fee. The lender pays our commission to our principal, the firm we work under. It is already inside any figures we give you.
Most lenders pay a share of the amount borrowed. It is up to 10% of what you borrow, and often less. It depends on the lender. You see it before you sign. Lenders pay different amounts, so the one we find may not pay us the most, or the least. A dealer who arranges finance is a broker too.
Lenders' own fees vary. As a guide, a fee to set up the agreement is about £100 to £500. It is often paid with the first payment. Some charge about £30 to £50 a year. On hire purchase, about £100 to £300 to own the asset at the end.
Do you arrange asset finance across the UK?
Yes. Our office is in Scotland. From there we help businesses all over Scotland and the UK.
A lot of our lenders let you sign online. So where you are does not matter.
How long does asset finance take?
Our team gets back to you within a day. After that, it depends on the lender and your case.
A simple case can be done the same day. A hard case can take a few weeks. The more notice you give us, the more lenders we can ask.
How has asset finance worked for other businesses?
★★★★★
No time wasted and all set up and new van delivered on the date said .
A minibus bought at auction
A Highland private hire firm bought a minibus at auction, and we got their money back the day it arrived.
Cash from a factory's own machines
A Moray manufacturer raised money against its own machines to pay off costly short-term debts.
A new van in the Highlands
Hire purchase on a new Maxus van. The only deposit was the VAT, and there was nothing to pay us up front.
Asset finance questions
What is an asset finance loan?
It is money to get a business asset, paid back each month. The asset is the security for the lender. In the trade it is usually hire purchase or a finance lease.
Is asset finance a good idea?
It can be. Your business gets the asset now, keeps its cash, and pays over time. The downsides: you pay more in total than if you paid cash. And if the payments stop, the lender can take the asset back. Some lenders also ask a director for a personal guarantee. Before you sign, check the total and what happens at the end.
What is the difference between asset finance and a business loan?
Asset finance is tied to one asset, and that asset is the security. A business loan is money you can use for many things. We arrange both.
Can you borrow against assets in the UK?
Yes. It is called asset refinance. Most lenders lend up to 80% of what the asset is worth, and some go up to 100%. It often costs a little more than finance for a new purchase.
Which lenders do you work with?
Over 120 lenders. They include names most businesses know, like Lloyds Bank, HSBC and Lombard (part of NatWest). They also include well known specialist lenders, like Haydock, Simply and Close Brothers.
Does applying for asset finance mean a credit check?
Applying to us is not a credit search, and it does not touch your credit score. A person in our team reads it first. To go ahead, you sign our consent form. Then we run a light credit check on the company, often known as a soft search. Each lender then does its own check.
Can I finance a used asset?
Yes, used as well as new. The seller must prove the asset is theirs. Older assets may be offered a shorter term.
Can I pay off asset finance early?
Yes. The charges are set at the start. To settle early, the lender adds up what is left, and most take some off. If you may pay early, tell us first, so we can set a shorter term.
Is asset finance tax deductible?
It depends on the type. Hire purchase may allow capital allowances, a kind of tax relief. Lease payments may be a business cost. We are not tax advisers, so ask your accountant.
Do you give financial advice?
No. We are a broker, and we do not give advice. We find lenders and show you what they offer. The lender makes the decision, and you choose with all the facts.
How do I apply for asset finance?
Apply online with Donnie, our in house AI agent, at any time, or call us. Donnie can also ask our team to call you back. We will tell you straight what is possible, and what happens next.
Use an AI assistant? It can ask Donnie questions for you. It finds him at /llms.txt and /api/agent.
Can I apply at any time, from anywhere in the UK?
Yes. Donnie, our in house AI agent, takes applications 24 hours a day, 7 days a week. He answers your questions too. Our office is in Scotland, and our team works with businesses across the whole UK.
Donnie is powered by Anthropic's Claude. He is built so other AI agents can talk to him. So your own AI assistant can ask him questions for you. How AI assistants talk to Donnie