Asset finance
for UK SMEs
Growth shouldn't be limited by your cash reserves. Asset finance is just a way to get the equipment, vehicles, or technology you need to grow your business while keeping your capital in your business.
Our approach
At SMEmoney.co.uk, we do things differently
We are not a lender or a broker. We simply refer your details to expert broker partners, based on your requirements, who between them have access to over 70 specialist UK lenders.
Our mission is simple: to provide you with the tools and the choice to fund your future without the bias of a single bank.
Why use asset finance?
Why use asset finance?
There are plenty of reasons to use asset finance. One of the major benefits is acceptance rates. Because you are usually funding a physical piece of equipment, like a vehicle or a machine, the lender's money is a bit safer. So acceptance rates are higher than on business loans and rates can be a lot cheaper.
Asset finance allows you to:
- Preserve Working Capital: Keep your cash for day-to-day operations and unexpected costs.
- Grow your business: Fund assets that create revenue like clinical equipment or delivery vans.
- Improve Budgeting: Fixed monthly payments make it easy to forecast your future spending.
- Unlock Value: Use the assets you already own to release equity and fund new projects.
A closer look at your options
Hire purchase
If you intend to keep your equipment for the long term, Hire Purchase is often the best route. You pay a deposit and then spread the remaining cost over two to five years or more. Once you make the final payment, the asset is yours. This is a popular choice for construction equipment and heavy vehicles where long-term value is high.
A closer look at your options
Finance leasing
A finance lease is ideal if you want to use the latest equipment without the burden of ownership. You pay for the use of the asset over a set period. At the end of the term, you can choose to extend the lease, return the item, or even sell it on behalf of the lender and keep a portion of the proceeds. This keeps your balance sheet light and your technology current.
A closer look at your options
Asset refinance
Your business might be sitting on valuable assets that you can use to fund new work. If you have already paid for machinery or vehicles, you can use them as security for a new facility. The lender "buys" the asset from you and leases it back. You get an immediate cash injection to use for recruitment, marketing, or a new site, while your equipment stays on the job.
Right finance for your assets
There is no one-size-fits-all asset solution
Depending on whether you want to own the asset or simply use it, different asset finance products will suit your goals.
| Feature | Hire Purchase (HP) | Finance Lease | Asset Refinance |
|---|---|---|---|
| Ownership | You own it after the final payment. | Usually stays with the lender. | You keep using your owned assets. |
| Upfront Cost | Typically a 10% deposit plus full VAT, but some lenders are flexible. | Lower initial cost; often just one monthly rental. | None. You receive cash into your business. |
| Tax Treatment | Claim capital allowances (AIA/Full Expensing). Used items can be funded but may have different tax rules. | Rentals are usually 100% tax-deductible. | Interest and fees are typically deductible. |
| Often Used For... | Long-term assets like heavy machinery, vehicles etc, but can be used for shorter shelf-life items like software or IT equipment and furniture. | Assets that depreciate quickly (e.g., IT/Tech). Can be used for vehicles and equipment and spreading the VAT. | Boosting cash flow using existing equipment. |
Tax efficiency for SMEs
As of 2026, the UK government continues to support business investment through significant tax incentives.
- Annual Investment Allowance (AIA): Most SMEs can deduct 100% of the cost of qualifying plant and machinery up to a £1 million cap. Full Expensing: For companies buying new, unused equipment, you may be able to claim a 100% first-year deduction with no upper limit on the investment amount. EVs and commercial EVs fall into this category currently.
- VAT Benefits: With leasing, you pay VAT on the monthly rentals rather than all at once, which can be much easier for your cash flow.
The SMEMoney process
Getting your business funded doesn't have to be hard.
We can secure funding in under 24 hours for some businesses, but it can often take a little longer as every company is unique.
Work out Your Budget and Payments
Use our free calculators to see what your monthly costs might look like.
From the SMEmoney family
Need help growing the business behind the funding?
The Fractions is our sister digital marketing and web development agency, working with founder-led SMEs turning over roughly £1m-£15m on paid advertising, customer journey optimisation, and technical growth strategies - with a particular focus on automotive and financial services.
FAQs
Frequently asked questions
In many cases, an initial decision can be made within 24 to 48 hours after your broker submits the application.
No. While we focus on SMEs, our broker partners work with limited companies, sole traders, and partnerships.
For Hire Purchase, a 10% deposit is often required. However, for leasing or certain specialist products, low-deposit options may be available depending on your credit profile.
Absolutely. Asset refinancing is a common way to release working capital from your existing fleet or machinery.
You can usually return the asset, extend the lease at a reduced rate, or sell the asset and keep a significant part of the sale price.