Kit funding

Asset finance for plant, machinery and vehicles

Asset finance funds the kit against the kit — no additional security in most cases, terms matched to useful economic life, and VAT structuring options that free up cash on day one.

Audience: Manufacturing, construction, logistics

Situation: You need the equipment to fulfil the contract, but paying cash strips the working capital you need to actually deliver.

Primary: Asset Finance

The situation

Cash purchase of a £100k machine sounds efficient until you realise you've just consumed three months' working capital for a tool that will produce revenue over five years.

How we approach it

We match the funding to the asset: hire purchase where you want to own, finance lease for balance-sheet efficiency, operating lease where usage matters more than ownership. Refinance of already-owned kit is common and quick.

What that looks like in practice

Hire purchase, finance lease, operating lease and refinance
Typical terms 3-7 years matched to asset life
Deposits from 10% (soft assets) to 30% (heavy plant)
VAT-deferred structures where applicable
Same-day quotes are common for standard assets

Typical timeline

Day 1
Asset details and accounts submitted, quote issued.
Day 2-5
Documentation, supplier confirmation.
Day 5-10
Payout to supplier, asset delivered.

Common questions

Hire purchase or lease — which is better?

HP if you want to own outright and claim capital allowances directly. Lease if balance-sheet treatment matters or the kit will be replaced at end of term. Your accountant will have a view.

Can I refinance kit I already own?

Yes — sale-and-HP-back releases capital from paid-off assets. Popular way to unlock working capital without new debt lines.

What if the asset is unusual?

Soft or specialist assets go to specialist funders. We know which — most brokers don't, and default lenders decline.