Equipment leasing – Affordable access to the tools your business needs
Equipment leasing helps SMEs access tools, vehicles, or machinery without heavy upfront costs. Spread payments over time and choose to return, upgrade, or buy at the end.
Funding Options by Tide partners with 80+ UK lenders, supporting 17,000+ businesses with £1bn+ in funding. Compare equipment leasing options in minutes to keep your business moving while protecting cash flow.
What is equipment leasing and how it works
What is equipment leasing?
Equipment leasing is a form of asset finance that allows businesses to rent machinery, vehicles, or technology from a lender for an agreed period. Instead of paying the full cost upfront, you spread payments across fixed monthly instalments.
At the end of the lease term, you may have the option to upgrade, extend, or purchase the equipment, depending on the agreement.
How equipment leasing works
Choose the equipment you need – vehicles, IT systems, machinery or tools.
The finance provider buys the asset on your behalf.
You lease it over a fixed term, paying regular instalments.
At the end, you may return, upgrade, or purchase the equipment (depending on the lease type).
Types of equipment leasing
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
Hire purchase
Spread the cost and gain ownership at the end, often after a nominal option to purchase fee. Suited to assets you plan to keep long term.
Equipment leasing vs other finance options
Asset finance
Asset finance is used to fund vehicles, machinery and equipment.
Business loans
Business loans are best for one-off investments with fixed repayments. You borrow a lump sum and repay over months or years.
Commercial vehicles
Vans, HGVs, and electric vehicles - finance leases are often used by logistics, trades, and courier companies.
Trade credit
Delayed payment terms with suppliers, rather than finance through a lender. Learn more about trade credit.
Benefits of equipment leasing
Things to consider
Pros | Things to consider |
Spread the cost over time instead of paying upfront | You don’t always own the equipment |
Keep cash flow steady and predictable | Long-term cost can exceed upfront purchase |
Access the latest technology and upgrade easily | Early termination may trigger fees |
Payments may be tax deductible | Some leases require a deposit or security |
Flexible end-of-term options (return, upgrade, buy) | Responsibility for maintenance may vary by lease |
Is equipment leasing right for my business?
Leasing is suitable for businesses that:
Need equipment but want to protect working capital
Want to regularly upgrade to the latest technology
Operate in industries where assets depreciate quickly
Prefer predictable monthly payments for budgeting
It may be less suitable if you want full ownership without ongoing costs, in which case hire purchase could be more appropriate.
Costs and eligibility
The cost of equipment leasing depends on:
Value of the asset
Lease length and terms
Business trading history and credit score
Whether the agreement is secured or unsecured
Lenders may ask for recent accounts, bank statements and in some cases a personal guarantee.
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.
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We'll be there to guide you through every step of the process.
Trusted by over 17,000 customers
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+ UK lenders in minutes
We scan the market so you don’t have to, finding the right option for your business.
Trusted by 17,000+ UK businesses
From startups to established SMEs, we’ve already helped secure over £1bn in funding.
FCA-regulated and Tide-backed
We operate as a credit broker, not a lender, giving impartial access to multiple finance products.
Excellent customer experience
Our Trustpilot rating is 4.8 out of 5, based on 1,300+ independent reviews.
Personalised support
Our team can guide you through the process and help you choose the finance that fits your needs.
Learn more about equipment leasing
Is equipment leasing tax deductible?
Lease payments may be considered a business expense, meaning they can be tax deductible. Always check with your accountant.
What happens at the end of the lease?
Depending on your contract, you may return the equipment, extend the lease, upgrade, or buy it outright.
Can startups get equipment leasing?
Yes, some lenders offer leasing to newer businesses, although established firms may access better terms. See business loans for new businesses.
How quickly can I arrange equipment leasing?
Many agreements can be finalised within days, once documents are supplied and the asset chosen.
Is leasing better than buying?
It depends on your goals. Leasing keeps cash flow flexible and allows upgrades, while buying gives you ownership but ties up capital.
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.
Monthly payments
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Total interest
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Financial product information
Representative example*
• 9.7% APR Representative based on a loan of £50,000 repayable over 24 months.
• Monthly repayment of £2,291.56. The total amount payable is £54,997.44
*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 8.2% APR
Repayment period
1 month to 30 years terms
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.