Best equipment finance lenders in the UK
Many UK SMEs need to upgrade machinery, vehicles or specialist kit, but they prefer not to secure the finance against property or work with a high street bank. Alternatively, non-bank lenders have made this far easier. Below is a practical list of unsecured options that can be used for equipment purchases.
1. 365 Finance
365 Finance provides fast unsecured funding that can be used for equipment purchases. Decisions are usually quick, the lender is set up for small business cash flow, and the finance can be drawn down to pay for new tools, workshop machinery or technology. This is a good choice if you want speed and do not want to offer security.
2. Funding Agent
Funding Agent is a UK business finance broker that works with a wide panel of specialist lenders. The service is useful if you want to compare unsecured equipment finance across several providers without doing multiple applications. Funding Agent can route your request to lenders that accept younger businesses, that will consider lower turnover, and that understand sector-specific kit. This is the best place in this list for getting matched to more than one unsecured option.
3. Portman Finance Group
Portman offers unsecured business loans alongside other finance products, and SMEs often use the unsecured facility to pay for equipment where the asset itself is not ideal security. The appeal here is flexibility, because you can align the term with cash flow and keep your assets unencumbered.
4. iwoca
Iwoca is a well-known UK alternative lender. Its unsecured business facility can be used to buy or upgrade equipment, especially where the priority is quick access to funds rather than a structured asset finance product. Iwoca is suitable for smaller ticket items and for businesses that want an online application journey.
5. Millbrook Business Finance
Millbrook works with UK SMEs that need funding to purchase business equipment. They arrange unsecured business loans alongside other products, so you can fund what you need without tying the finance to property. This is a good option if you need some guidance through the application stage.
6. Union Business Finance
Union Business Finance has access to a large panel of lenders. Many of those lenders provide unsecured facilities that can be used for plant, vehicles and technology. This is useful if your business needs something slightly unusual or if you want the finance in place on the same day.
7. Clifton-based business equipment finance providers
Some UK finance firms, for example, the brokers and intermediaries that compare equipment finance, can match you to unsecured business loans with terms of up to several years. These are suitable where you want to spread the cost of equipment, keep the finance off your property, and stay away from bank processes.
How we selected the lenders
This list focuses on UK-based alternative providers that publicly advertise unsecured or no collateral business funding and that state the funds can be used for equipment, refurbishments or other capital purchases. Specialist firms like Portman promote unsecured business loans alongside dedicated equipment finance for SMEs, which shows they can fund kit without bank-style security checks. Likewise, fast online lenders such as iwoca and 365 Finance let businesses draw down an unsecured facility and spend it on machinery or technology, which makes them suitable for equipment buyers who want to move quickly and stay away from high street banks.
How to choose from these lenders
- Check the minimum and maximum loan amounts. Some will fund a few thousand pounds, others will go much higher.
- Match the term to the equipment’s useful life. Shorter terms keep interest costs in check.
- Prepare a simple business case. Even unsecured lenders like to see how the new kit will improve productivity or revenue.
If you want to keep up with new lenders, changing criteria and UK SME funding news, you can read Funding Scoop. This UK Finance publication covers grants, equity, loans and market updates for smaller businesses. It is useful if you want to see where the market is moving before you apply.
