What Can You Finance?
Almost any tangible business asset can be financed. Here are the most common categories — but if you don't see your asset listed, get in touch and we'll find the right lender.
Vehicle & Fleet Finance
Fund cars, vans, trucks, and entire fleets without tying up working capital. Spread the cost over 1–7 years with fixed monthly payments. Options include hire purchase, finance lease, and contract hire.
Best for: Logistics companies, delivery businesses, tradespeople, and sales teams.
- Hire purchase — own the vehicle at the end of the term
- Finance lease — lower monthly payments, return or purchase at end
- Contract hire — fixed cost including maintenance and servicing
- Balloon payments available to reduce monthly costs
Equipment & Machinery Finance
Acquire manufacturing equipment, construction machinery, agricultural tools, or industrial plant without a large upfront outlay. Spread costs over the useful life of the asset and preserve cash flow.
Best for: Manufacturers, construction firms, agricultural businesses, and workshops.
- Finance for new and used equipment
- Tax-efficient structures (capital allowances)
- Seasonal payment plans for cyclical businesses
- Refinancing existing equipment to release capital
Technology & IT Finance
Fund laptops, servers, software licences, telecoms systems, and IT infrastructure. Technology depreciates quickly, so leasing keeps you up to date without large capital commitments.
Best for: Offices, tech startups, schools, and any business refreshing IT regularly.
- Operating leases for regular technology refresh cycles
- Bundle hardware, software, and installation into one payment
- Upgrade options built into the agreement
- Off-balance-sheet options available (operating lease)
Specialist & Sector Finance
Specialist asset finance for sectors with unique needs — from dental chairs and gym equipment to catering appliances and salon fit-outs. Lenders who understand your industry can offer tailored terms.
Best for: Healthcare, hospitality, fitness, beauty, and professional services.
- Sector-specialist lenders who understand your assets
- Soft asset finance for items without traditional resale value
- Fit-out and refurbishment finance
- Deferred start payments for new businesses
Access 80+ Asset Finance Lenders Through Tide
Tide has partnered with Funding Options to create the UK's largest credit marketplace. Compare asset finance from over 80 lenders in one place — from hire purchase and finance leases to equipment loans and refinancing. Check eligibility in minutes without affecting your credit score.
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- Access over 80 lenders through one simple application — the widest choice in the UK
- Asset finance from £1,000 to £20 million covering vehicles, equipment, machinery and more
- Check eligibility in minutes without affecting your credit score
- Dedicated support to match you with the right lender for your asset type
- If you're a Tide member, apply directly within the Tide app
- Rated 'Excellent' on Trustpilot with over 33,000 reviews
Disclosure: Tide acts as a marketplace — final rates and terms depend on the individual lender you're matched with. Merchant Insight may receive a referral fee if you apply through our link. This does not affect our editorial independence or the rates you receive. All provider statistics, lender counts, and Trustpilot scores were believed accurate at time of writing and are sourced from publicly available information. Please verify current figures directly with the provider.
How Asset Finance Works
Asset finance allows you to acquire the equipment your business needs without paying the full cost upfront. Instead, you spread the cost over a fixed term — typically 1 to 7 years — with regular monthly payments. The asset itself acts as collateral, which often means you don't need to offer additional security.
Hire Purchase (HP)
You pay fixed monthly instalments over an agreed term. Once the final payment is made, ownership of the asset transfers to you. You can claim capital allowances on the asset from day one, making it tax-efficient. HP is the most popular form of asset finance in the UK.
Finance Lease
The finance company buys the asset and leases it to you for a fixed period. You have full use of the asset but don't own it. At the end of the term, you can return it, extend the lease, or sometimes purchase it for a nominal fee. Lease rentals are typically fully tax-deductible.
Operating Lease
Similar to a finance lease but for a shorter period — usually well within the asset's useful life. The asset stays off your balance sheet, which can improve your financial ratios. At the end of the term, you return the asset. This is popular for technology and vehicles where you want regular upgrades.
What to Consider Before Applying
Total Cost of Finance
Compare the total amount repayable — not just the monthly payment. A longer term means lower monthly costs but more interest overall. Factor in any deposit, arrangement fees, and end-of-term options (balloon payments, purchase fees).
Ownership vs Flexibility
If you want to own the asset outright, hire purchase is the right choice. If you prefer flexibility to upgrade regularly — especially for technology or vehicles — leasing gives you that freedom without the commitment of ownership.
Tax Implications
Different structures have different tax benefits. HP lets you claim capital allowances; lease rentals are deductible as a business expense. The Annual Investment Allowance (AIA) offers 100% relief up to £1M. Always speak to your accountant.
Frequently Asked Questions
What is asset finance?
Asset finance is a way of funding business equipment, vehicles, or machinery by spreading the cost over time instead of paying upfront. The asset itself typically acts as security for the finance, which means you may not need to offer additional collateral. Common types include hire purchase, finance lease, operating lease, and equipment loans.
What's the difference between hire purchase and leasing?
With hire purchase (HP), you pay fixed monthly instalments and own the asset outright at the end of the agreement. With a finance lease, you rent the asset for a fixed period and return it at the end (or pay a residual value to keep it). An operating lease is similar but typically shorter-term, and the asset stays off your balance sheet.
How much deposit do I need for asset finance?
Deposits vary by lender and asset type but typically range from 0% to 20% of the asset value. Putting down a larger deposit reduces your monthly payments and may help you secure better rates. Some lenders offer 100% finance with no deposit for businesses with strong credit profiles.
Can I get asset finance for used equipment?
Yes. Most asset finance providers will fund used or refurbished equipment, though the terms may differ from new assets. The age and condition of the equipment will affect the maximum finance term available — typically, lenders won't finance assets beyond their useful economic life.
Is asset finance tax-deductible?
In many cases, yes. With hire purchase, you can typically claim capital allowances on the asset and deduct interest payments. With leasing, the full rental payments are usually tax-deductible as a business expense. The Annual Investment Allowance (AIA) allows businesses to claim 100% tax relief on qualifying capital expenditure up to £1 million per year. Always consult your accountant for advice specific to your situation.
How quickly can I get asset finance approved?
Approval times vary. Through Tide's marketplace of 80+ lenders, you can check eligibility in minutes without affecting your credit score. For straightforward applications, funding can be approved within 24–48 hours. More complex deals involving high-value or specialist assets may take 5–10 working days.