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Asset-backed hire purchase is typically available to UK SMEs with a trading history, or for early-stage firms with a credible start-up business plan. Lenders focus on the equipment’s value and condition, plus your ability to service repayments from forecast cash flows. For biotech start-ups, they often assess whether the equipment is integral to operations and can be relocated or reused if the business evolves. Terms commonly run from 24 to 60 months, with indicative SME pricing often around 6% to 20% APR equivalent. Decision times are usually around 1 to 3 weeks for straightforward cases.

A finance lease for equipment is often suitable where you want to use high-cost instruments without owning them immediately. Lenders usually require a clearly specified asset, supplier quotation and evidence you can afford the rental payments, alongside standard KYC/AML checks. For start-ups, clearer forecasts and a coherent plan for utilisation can help. Lease terms are commonly 24 to 72 months, often 36 to 60 months for lab-related equipment, reflecting useful life. Pricing is typically quoted as lease rentals, broadly comparable in cost to hire purchase once converted, with indicative SME equivalents around 6% to 20% APR.

Invoice-linked asset finance is less common than pure equipment hire or lease, but some lenders offer revolving facilities where receivables and asset profile support ongoing drawings. Eligibility typically includes invoice generation or verifiable customer payment expectations, regular invoicing patterns, and basic creditworthiness. It can suit biotech start-ups with testing services, contracted R&D or consultancy where invoices provide evidence of cash generation. Facilities are commonly £50,000 to £1,000,000, with typically 12 months facility tenure and periodic reviews/renewals. These arrangements can take 3 to 6 weeks for due diligence and setup for newer businesses.