What is Equipment Finance?
Equipment finance is specialist business asset finance used to purchase machinery, vehicles, technology or other business equipment. The equipment itself typically serves as collateral, enabling lenders to offer competitive rates even without additional security. It preserves working capital while giving businesses immediate access to the assets they need to operate and grow. Seven Hills Capital Group works with specialist UK asset finance lenders to find the right deal for your equipment type.
How Equipment Finance works in practice
A straightforward way to acquire the assets you need. Fund machinery, vehicles, or technology while preserving your working capital. We search the market to find the best deal.
How it works
You identify the equipment you need to purchase
The lender funds the purchase — either directly or by reimbursing you
The equipment acts as security for the loan
You repay over an agreed term — typically 12 to 72 months
At the end of the term you own the equipment outright (hire purchase) or have the option to purchase (lease)
Who It Is Right For
Equipment finance suits any business that needs to acquire assets to operate — manufacturing, construction, hospitality, healthcare, logistics, agriculture and many more. It is particularly useful when a business does not want to tie up working capital in a large asset purchase, or when the equipment will generate revenue that services the repayments.
Pros
- Equipment acts as security — wider credit appetite than unsecured business lending
- Preserves working capital — spread the cost over the asset's useful life
- Tax benefits — payments may be offset against tax as a business expense
- Fixed repayments make budgeting straightforward
Things To Consider
- The equipment is at risk if repayments are not maintained
- Total cost over the term is higher than outright cash purchase
- Some lenders restrict the type or age of equipment they will finance
- Early termination of an asset finance facility can be costly
Why Use Seven Hills Capital Group
Equipment finance is one of the most competitive product categories in UK business lending — with approval rates among the highest of any asset finance product. Seven Hills Capital Group works with specialist asset finance lenders who understand specific equipment types and sectors. We know which lenders finance older or specialist kit, which move fastest, and which offer the most competitive rates for your asset type and business profile. If you have broader requirements, we can also explore asset-based loans or a business term loan alongside all finance products.
See How This Could Work
A sole trader plumber needed a new ULEZ-compliant van quickly without draining working capital.
Equipment finance secured against the vehicle got the new van on the road within five days with monthly repayments structured around existing cash flow.
Read full case study
Frequently Asked Questions
What types of equipment can be financed?
Almost any business asset can be financed — machinery, commercial vehicles, IT equipment, medical equipment, catering equipment, agricultural machinery, construction plant and more. Some specialist asset finance lenders focus on specific equipment categories and can offer better terms as a result.
What is the difference between hire purchase and equipment leasing?
With hire purchase you own the equipment outright at the end of the term. With a lease agreement you use the equipment for an agreed period and either return it or pay a final sum to purchase. The right structure depends on whether you want long-term asset ownership. Seven Hills Capital Group will advise which is more tax-efficient for your situation.
Can I finance used or second-hand equipment?
Yes. Many specialist asset finance lenders will finance used equipment, though the age and condition affects what is available and at what rate. Seven Hills Capital Group works with lenders who specifically specialise in older or non-standard assets that mainstream lenders decline.
How quickly can equipment finance be approved?
Asset finance has one of the fastest approval rates of any business finance product. Many lenders give initial decisions within 24 hours and can fund within days for straightforward cases. We will identify the fastest appropriate lender for your equipment type.
Do I need a deposit for equipment finance?
Some lenders require a deposit — typically 10–20% of the asset value. Others offer 100% asset finance with no deposit required. The requirement depends on the lender, the equipment type, and your business profile. We will identify which options are available before you commit.
Not sure if Equipment Financing is right for your business?
Our team will tell you honestly in one conversation whether this is the right product for your situation — and if not, what is.