Can second-hand or used commercial machinery be financed?

Yes. Many asset finance providers fund second-hand plant, vehicles, and machinery, provided the equipment is in good working order with an identifiable residual market value. If you need liquidity against machinery you already own, explore asset refinancing.

Who is responsible for equipment maintenance and insurance?

Under both Hire Purchase and Finance Lease agreements, your business is responsible for comprehensive insurance, servicing, and ongoing operational maintenance of the asset. You can submit an enquiry to discuss equipment funding.

How does asset refinancing (sale and leaseback) work?

If your business owns machinery, vehicles, or equipment outright with no existing finance against them, a lender can purchase those assets based on current market valuation and lease them back. This releases an immediate lump sum of cash for working capital or business expansion.

What deposit is typically required for asset finance?

Deposits typically range from 10% to 20% of the asset's purchase price, plus the full VAT amount (which VAT-registered businesses can reclaim on their next quarterly return). Certain lenders offer zero-deposit facilities for established businesses. See how our introduction process works.

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Asset & Equipment Finance

Hire purchase, finance leasing, and refinancing for commercial vehicles, machinery, and equipment.

Asset and equipment finance enables UK businesses to invest in high-value commercial vehicles, heavy plant, industrial machinery, and specialist technology without exhausting critical cash reserves in one upfront payment.

Discuss your funding requirement WhatsApp Us Call 07544 314397

Machinery running on a UK production floor

Navy and gold illustration of financed equipment

Understanding asset & equipment finance.

By spreading the capital expenditure across the productive working life of the equipment, businesses preserve working capital while deploying modern operational capacity immediately.

Facilities include hire purchase (for eventual ownership), finance and operating leases, and asset refinance (equity release from unencumbered machinery already on your company balance sheet).

BusinessLending.uk is an introducer, not a lender. We do not provide personalised financial advice. Nothing on this page is advice, an offer, or an indication that finance will be available to your business.

Real businesses, real timing, real trading patterns.

Decision map

Whether it fits, and how it can be built.

General indicators only. Providers set their own criteria and reach their own decisions.

This may be worth exploring if…

The capital requirement is tied to a specific, identifiable, revenue-generating commercial asset
You want to spread procurement costs over 2 to 7 years to match depreciation and cash earnings
You already own unencumbered machinery and wish to release equity without selling the assets
You want to benefit from potential UK capital allowances and tax advantages associated with equipment finance

Common structures within the category

01
Hire Purchase (HP)
The business pays regular monthly instalments over an agreed term. Once the final payment and nominal option-to-purchase fee are paid, complete legal ownership passes to your company.
02
Finance Lease
Your company rents the equipment for its entire working life. The funder retains legal title, while your business enjoys full operational use and bears maintenance responsibilities.
03
Operating Lease
Ideal for specialist equipment or vehicles with high residual values. You pay for the use of the asset over a shorter term, with the funder taking the residual value risk.
04
Asset Refinance (Capital Release)
The lender purchases unencumbered assets you currently own and leases them back to you, releasing an immediate cash injection based on independent valuation.

Funding requirement

Discuss your asset & equipment finance requirement.

Tell us the purpose, approximate amount and preferred timing. We will review the parameters and discuss which finance routes may be relevant.

BusinessLending.uk is a commercial finance introducer, not a lender. No upfront fees. Subject to provider assessment.

Discuss Your Requirement WhatsApp Us

The provider’s perspective

What a provider wants to understand before deciding.

Purpose of the funding and how it supports the business
Trading history and turnover
Profitability and repayment capacity
Existing borrowing and commitments
Credit profile of the business and its directors
Any security available, including personal guarantees
Asset type, age, manufacturer reputation, expected working life, and secondary resale liquidity
Supplier quotation, invoice details, and whether the equipment is new or second-hand
Cash flow capacity to comfortably service the monthly asset repayment schedule

Costs vary by provider, product, amount, term and the risk presented. We do not quote rates on this website because pricing is set by the provider following their own assessment. Some facilities are unsecured; others require security over an asset, a debenture, or a personal guarantee. Any costs, fees and security requirements are set out by the provider in writing before you commit.

Documents worth having to hand

Checklist

Latest filed accounts
Recent management accounts, where available
Three to six months of business bank statements
A short summary of what the funding is for
Details of existing finance agreements
Supplier pro-forma invoice or formal equipment quotation
Asset specification sheet and details of current location and condition (for used equipment)
Asset register or proof of ownership (for asset refinance applications)

Nothing here is mandatory before you contact us — it simply makes the first conversation more productive.

Questions