Equipment finance – Spread the cost of tools, tech and machinery
Equipment finance helps businesses access the tools, technology and machinery they need without paying the full cost upfront. Instead, you spread payments over time, keeping cash flow stable while upgrading equipment to stay competitive.
Funding Options by Tide works with 80+ UK lenders and has supported over 17,000 businesses, securing more than £1bn in funding. Compare equipment finance options in minutes and find the right fit for your business.
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What is equipment finance and how it works
What is equipment finance?
Equipment finance is a type of asset finance designed specifically for business equipment. It allows you to lease, hire purchase or refinance equipment, paying in instalments while you use it.
Equipment can range from IT systems, medical devices and catering kit, to manufacturing machinery, plant vehicles and office furniture.
How does equipment finance work?
Choose the equipment you need and agree a price with the supplier.
The lender buys the equipment and leases or finances it to you.
You make regular repayments over the agreed term.
At the end of the agreement, you may:
Own the equipment outright (hire purchase)
Return it and upgrade (operating lease)
Continue renting or refinance (finance lease)
This helps businesses stay up to date with the latest tools while avoiding large upfront costs.
How does Funding Options work?
Tell us how much you need
We’ll ask a few questions about your business and the reason for your loan.
Get quotes instantly
Our smart technology will compare quotes from up to 80+ lenders to help you find the ideal business loan.
Apply for a Business Loan 🎉
We'll be there to guide you through every step of the process.
Types of equipment finance
Plant equipment finance
Plant equipment finance is all about heavy machinery, machine tools, construction equipment and manufacturing equipment. If it lifts, shifts or has tracks like a tank, you can probably get it with plant machinery finance. Or maybe you need drive-in pallet racking shelving systems for your warehouse? You'd be surprised by the range of specialist heavy-duty items you can finance.
Finance lease
You rent the asset for most of its useful life. At the end, you can continue leasing, sell on behalf of the lessor or upgrade. Ownership stays with the lender.
Operating lease
Shorter than a finance lease with lower rentals because the lessor expects residual value. Often includes maintenance and upgrade options
Asset refinance
Borrow against existing equipment or vehicles
Vehicle and equipment finance
Specialist facilities for cars, vans, HGVs, yellow plant, manufacturing lines, medical and IT equipment.
Estimate your costs today
If you're ready to take your business to the next level, use our business loans calculator to get an idea of what you can afford.
Want to understand the cost of your loan?
Use our business loan calculator below to find out how much you can borrow to take your business to the next level.
Calculations are indicative only and intended as a guide only. The figures calculated are not a statement of the actual repayments that will be charged on any actual loan and do not constitute a loan offer.
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Financial product information
Representative example*
• 7.63% APR Representative based on a loan of £50,000 repayable over 24 months.
• Monthly repayment of £2,252.94. The total amount payable is £54,070.56
*Some lenders may apply fees during the application process, please note that these are set and provided by these entities.
Annual Percentage Rates
Rates from 2.75% APR
Repayment period
1 month to 30 years terms
Benefits of equipment finance
Key advantages and considerations
Pros | Considerations |
Spread costs over time | Overall cost higher than cash purchase |
Keep cash flow stable | May need deposit or documentation fees |
Access up-to-date technology | Missed payments can lead to repossession |
Flexible options (lease, hire, refinance) | You may not own the asset with leases |
Potential tax advantages | Terms vary by lender and product |
What equipment can be financed?
IT and office technology
laptops, servers, telecoms
Plant and machinery
excavators, forklifts, CNC machines
Medical and dental equipment
Catering and hospitality kit
Printing and packaging machinery
Specialist and renewable energy equipment
Who is eligible for equipment finance?
Lenders consider:
Trading history (12+ months preferred, but startups may qualify with guarantees)
Turnover, profit and bank statements
Credit profile (see bad credit business loans)
Equipment type, condition and resale value
Sector (common in construction, healthcare, manufacturing, retail, hospitality)
Alternatives to equipment finance
Business loans
Business loans are best for one-off investments with fixed repayments. You borrow a lump sum and repay over months or years.
Revolving credit facility
Draw down funds when needed, repay, and re-borrow. A flexible alternative to a fixed-term loan.
Invoice finance
Invoice finance releases money tied up in unpaid invoices.
Merchant cash advance
Merchant cash advance borrows against future card sales
How to apply with Funding Options by Tide
No fees for comparing and no obligation to proceed.
Tell us about your business and the funding you need.
Compare tailored offers from 80+ UK lenders.
Provide documents for underwriting.
Finalise your facility and receive funds quickly.
Why choose Funding Options by Tide?
Funding Options by Tide helps UK SMEs find fast, tailored business finance by connecting them with over 80 trusted lenders. Backed by Tide and FCA-regulated, the service is free and easy to use.
Compare 80+ lenders
Access a wide range of trusted lenders: from high street banks to alternative finance providers.
No fees or obligations
Our service is completely free to use. You’re in control of who you borrow from.
Fast, personalised results
Get real-time matches based on your business profile and funding needs.
Expert support when you need it
Our team is here to help — by phone, chat, or email.
Learn more about equipment finance
Is equipment finance secured or unsecured?
Most agreements are secured against the equipment itself. In some cases, lenders may ask for additional guarantees.
Can startups use equipment finance?
Yes, some lenders offer it to new businesses with strong business plans or personal guarantees. See also business loans for new businesses.
Can I finance second-hand equipment?
Yes, many lenders fund used kit as long as it is in good condition and has resale value.
What happens at the end of the agreement?
With hire purchase, you take ownership after a final fee. With a lease, you may return, upgrade or continue renting.
Are repayments tax deductible?
Leases may be deductible as an expense. Hire purchase may qualify for capital allowances. Always seek independent advice.
Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.
It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.
Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.
Simon Cureton
Chief Executive Officer
Simon has been Chief Executive Officer at Funding Options since 2019, spearheading its transformation into a leading fintech with the launch of its Funding Cloud platform. Simon has over 27 years of experience in financial services, having held senior posts at some of the biggest players in the industry all over the world.