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Funding by purpose

Business funding for equipment and machinery

Equipment finance and machinery finance are broad search terms for structures used to acquire, replace or refinance business assets. Providers may assess both the company and the specific asset being acquired.

The commercial scenario

Established UK limited companies and LLPs may consider external funding when a commercial event requires cash before the resulting revenue or benefit arrives. Examples include:

  • Replacing machinery, vehicles or technology that has become unreliable.
  • Adding capacity for a contract, production line or new service.
  • Funding installation, delivery, training or other project costs around the asset.
  • Releasing capital from eligible equipment the company already owns.

Funding routes a provider may consider

These are neutral descriptions, not recommendations. The routes available depend on the company, the transaction and each provider's criteria.

Hire purchase
The company pays for an asset over an agreed term, with ownership arrangements defined by the provider's agreement.
Finance or operating lease
The company pays to use equipment for a period; ownership, maintenance and end-of-term options vary by contract.
Asset refinance
A provider may consider releasing capital against qualifying unencumbered assets already held by the business.
Term facility
A separate business facility may be considered where the requirement includes costs beyond the asset itself.

Information a provider may ask for

  • The supplier quote, asset specification, age and condition.
  • Deposit available and whether VAT must be funded or paid separately.
  • How the asset will be used and the expected commercial benefit.
  • Recent accounts, management figures and bank statements.
  • Details of existing finance or charges over company assets.

What can affect availability

Backed does not determine eligibility or approval. A third-party provider may consider:

  • The asset's useful life, resale market and whether it is new or used.
  • Supplier credibility and where the asset is located.
  • The company's ability to meet payments alongside existing commitments.
  • Any installation risk, specialist use or reliance on one contract.

Practical preparation

  • Obtain a detailed written quote rather than a headline price.
  • Include delivery, installation, maintenance and VAT in the project budget.
  • Explain whether the asset replaces a cost or creates additional capacity.
  • Confirm whether existing assets are already subject to finance or security.

Clear, current information helps a provider understand the requirement. It does not guarantee that finance will be available or determine the terms offered.

Further reading

Tell us what your company needs to fund

Backed may introduce your company to one or more funding partners whose criteria may fit. Providers determine eligibility, approval, pricing and terms.

Submit a funding enquiry

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