£40.3bn
of new asset finance business in 2025, a fifth consecutive year of growth
Source: Finance & Leasing Association (FLA), via Finance Connect, 2025 data, published March 2026
Asset and equipment finance
Asset Finance for Scottish Businesses
Hire purchase, leasing and sale and HP back for plant, machinery, vehicles and specialist equipment, arranged by a whole-of-market broker with access to 575+ lenders.
- Broker since 1997
- 575+ lenders
- Led from Dundee
The UK asset finance market in numbers
These are UK-wide figures from the Finance & Leasing Association. They show the scale of the market that Scottish businesses can draw on.
£24.4bn
of asset finance went to SMEs, a record and 64% of the total
Source: Finance & Leasing Association (FLA), via Finance Connect, 2025 data, published March 2026
30%
of new asset finance business is written by independent (non-bank) lenders, up from 16% in 2007
Source: Finance & Leasing Association (FLA), via Finance Connect, 2025 data, published March 2026
Over a third
of UK business investment in machinery, equipment and vehicles is financed by asset finance
Source: Finance & Leasing Association (FLA), via Finance Connect, 2025 data, published March 2026
How asset finance can be structured
The right structure depends on whether you want to own the asset, how long you will use it and how your accountant wants it treated.
Hire purchase
You pay in instalments and normally own the asset once the agreement ends. Often used for equipment and vehicles you intend to keep for their working life.
Finance lease
You rent the asset for an agreed term with rentals paid in instalments, usually with a lower upfront cost. Ownership generally stays with the lender unless the agreement says otherwise.
Operating lease and contract hire
Rental for part of the asset’s life, often with maintenance options. Suited to vehicles and equipment you want to replace regularly.
Sale and HP back
Release cash tied up in equipment you already own by selling it to a lender and repaying through hire purchase, subject to valuation and the lender’s criteria.
Refinancing existing agreements
Review current agreements and look at whether restructuring, consolidating or extending could ease monthly cash flow. Early settlement terms and total cost need checking first.
Fit-out and specialist assets
Commercial kitchens, hotel bedrooms, laboratories, IT hardware and other assets that some lenders treat differently from standard plant.
The main structures compared
| Hire purchase | Finance lease | Operating lease or contract hire | |
|---|---|---|---|
| Ownership at the end | Usually yours after the final payment | Lender keeps the asset; options at the end vary | Lender keeps the asset; it is returned or replaced |
| Upfront cost | Often a deposit | Often lower upfront cost | Often lower upfront cost |
| Tax and VAT (general) | Capital allowances may be claimable by you; VAT is usually charged up front on the price | Rentals are usually treated as an expense; VAT is usually charged on each rental | Rentals are usually treated as an expense; VAT is usually charged on each rental |
| Typically suits | Equipment you intend to keep | Equipment you need but do not need to own | Vehicles and equipment you replace regularly |
General information only. Tax and VAT treatment depends on your circumstances and the agreement, so please check with your accountant.
What lenders usually ask for
Requirements vary by lender and by the size and type of the deal. Starting with a supplier quote and a short summary of the business usually speeds things up.
- Business details and recent accounts, or management accounts for newer businesses
- Recent business bank statements
- A supplier quote or invoice for the asset
- Details of the owners and any guarantees required
- For sole traders and partnerships, personal details and a view of personal finances
Asset finance by sector
Plant and machinery
CNC and fabrication equipment, cranes, workshop plant and construction machinery.
Taxis, haulage and fleets
Taxis, private hire vehicles, vans and HGVs, including electric vehicles for Low Emission Zones.
Agriculture and forestry
Tractors, harvesters, processing equipment and biomass systems.
Distilleries and breweries
Stills, tanks, bottling lines and warehousing equipment.
Technology and life sciences hardware
Computing clusters, laboratory equipment and medical devices.
Sale and HP back
Release cash from equipment you already own.
Tell us about the asset
Tell us what you want to finance, roughly what it costs and a little about your business. We’ll come back to you with options. There is no obligation, and we don’t carry out a credit search at this initial stage.
Asset finance FAQs
Often, depending on the asset, its age and the lender. Some lenders prefer new equipment from established suppliers, while others will consider used or specialist items.
In some cases. Trading history is one of the things lenders look at, and a newer business may be asked for a deposit or personal guarantees.
With hire purchase you normally own the asset at the end. With a lease the lender keeps ownership and you rent the asset for the term. The right choice depends on how long you will use the asset and how your accountant wants it treated.
Often, through sale and HP back, subject to a valuation of the equipment and the lender’s criteria. We would look at the total cost carefully before recommending it.
Related
Sources
This page is general information only and is not legal, tax or financial advice. Figures come from the published sources listed on this page and were correct when last reviewed. Lender availability, terms and criteria vary and are subject to status and underwriting.
Paul Thompson, trading as Acorn.finance, is authorised and regulated by the Financial Conduct Authority (FRN 660207). Not all of the finance we arrange is regulated by the FCA.
Last reviewed: 11 November 2026