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Equipment Finance

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Business loan for equipment

As a specialist finance broker, we provide high quality equipment finance solutions for our clients. 
  • Business loan solutions for purchasing equipment
  • Equipment finance from £25,000 to £25 Million
  • Flexible payment options
  • Equipment leasing options
  • Terms from 3 months
  • Same-day agreement in principle
  • We can accept applications from individuals, limited companies, SPV's and offshore structures
  • Equipment finance for agriculture, brewery, catering, healthcare, garages, construction, shops and salons, IT, Fishing, gyms, office, printing, packaging, transport & logistics, warehouse, waste management
We pride ourselves on providing excellent service responsive to your needs.
Call us on 0203 880 8890 to discuss your requirements.

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What is Equipment Finance?

Equipment finance is an umbrella term for a number of specialist lending and leasing options to enable businesses to obtain physical equipment that they might otherwise be unable to afford.

It is important to be clear on the difference between equipment finance (or asset finance) as described, and asset-based finance, which are loans that leverage the business assets for collateral. Equipment finance, as is discussed in this article, deals with a range of options to pay for equipment over time.

The Various Names of Equipment Finance

Because equipment finance is such a broad term, many speciality funding options exist within it.

Consequently, equipment finance is sometimes referred to as any of the following (and more):

  • Asset finance
  • Equipment funding
  • Leasing (including finance leasing, or operational leasing)
  • Vehicle finance
  • Technology finance
  • Hire purchase
  • Car leasing
  • Agriculture finance
  • Tractor leasing

Note that all of these terms typically refer to a subsection or aspect of equipment finance, often tailored for a specific need.

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Types of Equipment Finance

There are 3 main types of equipment finance:

  1. Hire Purchase
  2. Finance Lease
  3. Operational Lease

In each, you spread the cost of the equipment over time, meaning you don’t need to have significant capital in order to obtain the equipment.

There are a number of smaller differences between the three main types of equipment-specific asset finance, but the core idea of each is simple:

Hire Purchase

Hire purchase is essentially a loan to buy the equipment. As the loan is tied to the asset, should you fail to make repayments, it will be repossessed by the lender.

With hire purchase, you are the owner of the equipment and are able to dictate its usage. Similarly, all maintenance and insurance is fully your responsibility.

Finance Lease

With a finance lease, you make monthly repayments on the equipment to the finance company for a number of months agreed in the terms of the contract.

While you do not own the equipment, it is treated in a very similar way - you will be responsible for maintenance and insurance, but you will have fewer restrictions on its use.

At the end of your lease term, you will be able to purchase the equipment for a pre-arranged cost, or you can return it to the leasing company. There may be additional fees if any damage has been done to the equipment beyond reasonable wear and tear.

Operational Lease

An operational lease is essentially a rental agreement. You do not own the equipment and are not responsible for its maintenance.

Depending on the specifics of your operational lease contract, the leasing company may also provide insurance.

There will be limitations on the equipment’s use, and any damage done to it will incur additional fees.

Under an operational lease, when the lease term is completed, you will have to hand back the equipment to the leasing company with no option for purchase. 

Comparing Equipment Finance Options

Here's a simple table comparing the best equipment finance options based on the specific needs of different businesses:

 

Hire Purchase

Finance Lease

Operational Lease

Ownership During Contract

You

The Leasing Company

The Leasing Company

Ownership After Contract

You

You

The Leasing Company

Maintenance

You

You

The Leasing Company

Insurance

You

You

Depends on Contract

Restrictions on Use

None

Some

Yes

Initial Cost (Deposit)

Largest

Moderate

Small

Final Payment (Balloon)

Large

Largest

None

Monthly Payments

Moderate

Moderate

Largest

Final Fees for Damage

No

Yes

Yes

Best For

Long Term Ownership

Long Term Use with Ownership Option

Short to Medium Term Hire

 
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Equipment Finance

Types of Equipment Eligible for Finance

Equipment funding is available for a huge spread of specialised items, from computers through to tractors.

In many cases, leasing companies will be willing to consider purchasing the item on your behalf, working with you to create a finance lease that is tailored to your specific business.

While these specialised leases may take longer to set up, they are no less valid than some of the more common leasing options.

At Clifton Private Finance, we have seen an interesting spread of equipment finance, from the tried and tested vehicle lease options through to some truly rare alternatives.

We can source equipment finance for:

  • Office furniture
  • Computer workstations
  • Networking infrastructure
  • Specialised vehicles, such as tractors, articulated lorries, refrigerated vans and more
  • Medical equipment, such as MRI machines, specialist dentist X-Ray scanners, etc.
  • High-end technology equipment, for example, electronics assembly line QA and fault scanning machinery
  • Construction equipment, including cranes
  • Bespoke machinery, such as packaging machines

If your business has a need for an uncommon piece of equipment, the right lease for it is just around the corner. 

Recent equipment finance and business loan case studies

Large Invoice Finance Facility Secured Despite Overseas Debtors
Large Invoice Finance Facility Secured Despite Overseas Debtors
Area
London
Capital Raised
£2.5m
Fleet of Vans Refinanced to Release £160k for Business Growth
Fleet of Vans Refinanced to Release £160k for Business Growth
Area
Cardiff
Capital Raised
£160k
Fast Asset Finance for Two Tractors at Low Rate | Case Study
Fast Asset Finance for Two Tractors at Low Rate
Area
Somerset
Capital Raised
£558k
Management Buy Out Finance For Funeral Director
£750k Management Buy Out Finance For Funeral Director
Area
London
Capital Raised
£750k
Asset Based Lending Facility for Steel Business | Case Study
Asset Based Lending Facility for Steel Business Management Buyout
Area
Wales
Capital Raised
£1.3m
Anaerobic Digester Plant Refinance For Business Growth
£5.2m Anaerobic Digester Plant Refinance For Business Growth
Area
Wales
Capital Raised
£4.1m
 

Alternatives to Equipment Finance

Of course, specialist equipment finance is not the only way to get the capital needed to invest in equipment. Consider:

Unsecured Business Loan

If you business credit history is strong, you may be able to obtain an unsecured business loan that will cover the investment. This may provide a more desirable level of control regarding repayments and fees that is more beneficial to your business model.

Secured Business Loan

If you have other valuable assets, you may want to consider a secured asset-based loan utilising those assets as collateral. This may have the advantage of a lower rate of interest, as well as providing additional capital for you to use in other areas of business expansion.

Invoice Finance

Do you need your new equipment as part of an exciting new project with a client? Invoice financing can unlock the funds tied in your accounts receivable, effectively getting those invoices paid early. This could be the perfect way to purchase the machines you need prior to undertake the project.

Investment

Investment from a third party, either angel investment, or even that of family or friends, could provide your business with the capital it needs to purchase specialist equipment without having to leverage credit.

Crowdsourcing

Though a successful crowdfunding project requires a strong marketing campaign, many businesses have successfully used crowdfunding to expand and obtain new machinery.

If you feel an alternative might be better for your business, speak to our experts and we can help you make the right decision. 

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Equipment Finance Service

Equipment Finance with Clifton Private Finance

Getting specialist equipment for your business can sometimes seem out of reach, especially when the cost of the equipment is greater than the immediate income from its use.

Investing in equipment can have significant long-term benefits, opening your business up to greater opportunities in the future, but it’s not always possible to simply purchase expensive specialist equipment without additional finance.

Thankfully, equipment finance can help.

Whether you are considering a finance lease, operational lease, or a hire purchase agreement, we can work with you to obtain the best deal on the market. Contact us today for a rapid assessment and specialist expert help.

Why Choose Us?

Our business loan service provides:

  • Market leading rates
  • Fast service - finance within 5 to 7 days
  • Access to specialist lenders 
  • Expert advice - professional service

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Get in Touch

If you have any questions about our services or want to start making things happen please contact us