Best asset finance companies in the UK

Few decisions shape a growing business as quietly as how it pays for its kit. Vehicles, machinery, IT and plant rarely come cheap, and buying outright can swallow the cash a company needs to trade. Asset finance offers another route, spreading the cost of equipment over its working life – and it is now firmly mainstream. In 2025, members of the Finance & Leasing Association provided £40.3 billion of funding to businesses and the public sector, almost a third of UK investment in machinery, equipment and purchased software.

The catch is that no single provider suits every business. The right partner depends on the type of asset you are funding, the size of the deal and your trading history. Below are five of the UK’s best-known asset finance companies, with a view on who each one tends to suit.

How we chose these companies

This is an editorial view rather than a scored ranking. We have looked at the companies most consistently active in UK asset finance and weighed four things: the breadth of products on offer, from hire purchase to leasing and refinance; the range of assets and sectors funded; track record and standing in the market; and experience serving small and medium-sized businesses. Where a lender tends to suit a particular type of deal, we have said so rather than pretending one name fits all.

Five UK asset finance companies worth considering

1. Novuna Business Finance – best for established SMEs wanting a service-led independent

Novuna Business Finance is a non-bank asset finance provider and a trading style of Mitsubishi HC Capital UK PLC, offering hire purchase and leasing to businesses across more than 50 industries. It has supported UK companies for 40 years and says it has funded over £5 billion, which makes it one of the more established non-bank providers in the market, and an option for firms that would rather not finance through a high-street bank.

Its asset finance covers the mainstream ground, from construction, manufacturing and transport to agriculture, technology and healthcare equipment, plus business car finance, and it has leaned noticeably into green assets such as renewable-energy kit and electric vehicles. Novuna points to service as a differentiator, and it holds the Institute of Customer Service’s Service Mark with Distinction alongside a number of recent industry awards.

Best for: Established SMEs that want an experienced, service-focused provider outside the big banks.
Products: Hire purchase and leasing, with block discounting and stocking finance alongside under its wider business finance arm.
Worth noting: Applicants generally need at least three years’ trading, and Novuna concentrates on asset finance and leasing rather than offering business loans.

2. Lombard – best for larger businesses and big-ticket assets

Lombard is part of NatWest Group and describes itself as the UK’s largest asset finance provider, citing the Asset Finance UK Top 50 2025 report published by Asset Finance Connect. It has been lending against business assets for more than 160 years, and that scale shows in its reach: alongside cars, vans and HGVs, it finances specialist and high-value assets including agricultural machinery, marine craft, aviation and renewable-energy equipment.

The product range is broad – hire purchase, finance lease, contract hire, residual value leasing, refinance and sale and leaseback – and the backing of a major banking group can help on the largest facilities. That same scale is the trade-off: businesses after a small, fast or unusual deal may find a specialist independent a more natural fit.

Best for: Larger or established businesses financing vehicles, fleets or big-ticket plant.
Products: Hire purchase, finance lease, contract hire, residual value lease, refinance and sale and leaseback.
Worth noting: Its strength is at the larger end, so smaller or non-standard deals may be better served elsewhere.

3. Close Brothers Asset Finance – best for SMEs wanting a relationship-led specialist

Close Brothers Asset Finance is a trading style of Close Brothers Limited, part of the Close Brothers Group, and a full member of the Finance & Leasing Association. It has worked in the market for almost 40 years and is built around sector specialists, with dedicated teams funding roughly 20 industries, from construction and transport to engineering, agriculture and print.

It offers hire purchase, finance lease, operating lease and refinancing, can fund new or used assets, and takes part in the government-backed Growth Guarantee Scheme. The relationship-led, specialist model tends to suit businesses with less standard or higher-value assets; for a small, vanilla deal, a high-volume lender may turn things around more quickly.

Best for: Established SMEs with specialist or higher-value assets who value sector expertise.
Products: Hire purchase, finance lease, operating lease and refinancing; new and used assets; Growth Guarantee Scheme.
Worth noting: The hands-on approach is less geared to small, standard deals that simply need speed.

4. Aldermore – best for straightforward hire purchase and leasing on mainstream assets

Aldermore Bank offers asset finance across construction, transport, agriculture, energy and fleet, funding everything from excavators and aerial platforms to tractors, commercial vehicles and alternative-energy kit such as heat pumps and electric vehicles. Its products cover hire purchase, finance and operating leases and refinance, with the option to fund new or used assets or release equity from equipment a business already owns.

Two of its selling points are practical: in-house asset management, which it says lets it set competitive valuations, and daily payment runs, which help release funds to a business or its supplier quickly. It is well suited to common, mainstream assets; for highly specialist or soft assets, a specialist lender may have more appetite.

Best for: Businesses financing mainstream plant, vehicles or equipment who want a bank-backed facility.
Products: Hire purchase, finance lease, operating lease and refinance; new, used or already-owned assets.
Worth noting: Its focus is mainstream assets, so unusual or soft-asset deals may suit a specialist better.

5. Time Finance – best for smaller tickets and harder-to-place deals

Time Finance plc is an independent, AIM-listed finance provider based in Bath, and it tends to come into its own at the smaller and more awkward end of the market. It funds both hard assets – construction, manufacturing and engineering machinery, tractor units, trailers and commercial vehicles – and soft assets such as commercial kitchens, IT hardware, AV equipment and shop fit-outs, which some larger lenders are warier of.

Its line-up includes hire purchase, finance lease, asset refinancing and vendor finance, and it works with businesses from start-ups to established firms, including sole traders. As a smaller independent, it can be flexible on deals a high-street lender might pass on; on a clean, standard facility, a larger bank may still price more keenly.

Best for: Smaller businesses, start-ups, and soft-asset or harder-to-place deals.
Products: Hire purchase, finance lease, asset refinancing and vendor finance; hard and soft assets.
Worth noting: For a straightforward, prime deal, a bigger bank may offer a sharper rate.

What is asset finance, and how does it work?

Asset finance is a way for a business to obtain equipment – vehicles, machinery, plant, IT and the like – without paying the full cost upfront, spreading the payments over the asset’s useful life instead. The asset itself usually acts as the security for the agreement, so businesses often avoid putting up additional collateral. It broadly splits into a few types:

Hire purchase: You pay in instalments and own the asset outright once the final payment is made. Suited to businesses whose goal is ownership.
Finance lease: The provider buys the asset and rents it to you for most of its working life; you maintain and insure it, and at the end you can usually extend, return it or arrange a sale.
Operating lease: A shorter-term rental covering part of an asset’s life, typically with lower monthly costs and no intention to own – common where kit dates quickly.
Contract hire: A long-term rental used mainly for vehicle fleets, where the provider handles sourcing and often maintenance.
Asset refinancing: Releases cash from equipment you already own by borrowing against its value, which can free up working capital.

Which structure works best depends on whether you want to own the asset, how you want it treated for tax and cash flow, and how long you expect to use it.

How to choose an asset finance company

The best asset finance company is the one that fits your asset, your deal size and your trading profile. A few things worth weighing:

Match the lender to the asset: Big-ticket, specialist or high-value assets suit providers with sector teams; mainstream vans and plant are well served by high-volume lenders.
Bank, specialist or independent: Bank-backed lenders can be competitive on larger, prime deals; independents and specialists are often more flexible on smaller, newer or unusual cases.
Check regulation and trade body membership: Look for lenders authorised by the relevant regulator where applicable and members of the Finance & Leasing Association, which operates a Business Finance Code.
Compare the total cost, not just the headline rate: Factor in the deposit, any arrangement or option-to-purchase fees, the term and the end-of-term position, not only the advertised percentage.
Think about the end of the agreement: Decide whether you want to own the asset, return it or upgrade, and pick the product – hire purchase versus a lease – accordingly.
Direct or through a broker: A broker can compare several lenders and place harder deals; going direct can be simpler for a straightforward facility.

It is sensible to get more than one quote and, for larger commitments, to take advice from an accountant or finance professional before signing.

Frequently asked questions

What is asset finance?

Asset finance is a form of business funding that lets a company use or buy equipment – such as vehicles, machinery or IT – by spreading the cost over time rather than paying upfront. The asset usually serves as the security for the agreement.

What is the difference between hire purchase and a finance lease?

With hire purchase you pay in instalments and own the asset once the final payment is made. With a finance lease you rent the asset for most of its working life and typically do not take ownership, though you can often extend, return it or arrange a sale at the end.

Is asset finance regulated in the UK?

It depends on the borrower and the agreement. Lending to sole traders and small partnerships can fall under Financial Conduct Authority consumer-credit rules, while most asset finance to limited companies is not FCA-regulated. Many lenders also follow the Finance & Leasing Association’s Business Finance Code.

Can I get asset finance for second-hand equipment?

Often, yes. Many providers fund used as well as new assets, and some will refinance equipment a business already owns to release cash, though terms and the maximum age of the asset vary by lender.

Can start-ups or newer businesses use asset finance?

Some providers will consider start-ups and sole traders, while others ask for a minimum trading history – commonly two to three years. If your business is newer, a specialist or independent lender, or a broker, may be the better route.

What happens if I miss a payment?

Missing payments can lead to extra charges, damage to your credit profile and, ultimately, repossession of the financed asset, since it secures the agreement. If you expect difficulty, it is best to speak to your provider early.

The bottom line

There is no single best asset finance company, only the one that best matches what you are buying and how your business trades. Lombard brings scale for big-ticket deals, Close Brothers depth of sector expertise, Aldermore a bank-backed route for mainstream assets, and Time Finance flexibility at the smaller end. Novuna Business Finance, which heads our list, tends to suit established SMEs that want an experienced, service-led provider outside the big banks. Whichever route appeals, it is worth getting more than one quote before you commit.

This article is general information, not financial advice, and is not an endorsement of any particular lender. Asset finance products, rates, fees and eligibility criteria differ between providers and can change over time, and the tax and accounting treatment of each option depends on your circumstances. Businesses should confirm the specific terms with each provider and seek advice from a qualified accountant or finance professional before entering into any agreement.