Top 10 £100,000 Equipment Finance Lenders for UK Businesses in 2026

Equipment finance is a form of asset-backed lending where a lender purchases the equipment on your behalf, and you then repay the cost plus interest over an agreed period. For a £100,000 facility, you would typically pay a deposit (often around 10% to 20%), and the lender funds the remaining balance. The equipment itself acts as security for the loan, which means the lender can repossess it if you default. Once all repayments are made, ownership transfers to your business. This structure keeps your other business assets separate and preserves working capital for day-to-day operations.

Most UK limited companies, LLPs, and sole traders with at least six to twelve months of trading history can apply. Lenders will assess your business's financial health, typically looking at bank statements, management accounts, and your credit profile. The equipment being financed also plays a key role — it should be a tangible asset with a clear resale value, such as manufacturing machinery, commercial vehicles, or IT hardware. Startups may face stricter criteria and could be asked to provide personal guarantees or larger deposits to secure approval.

For a £100,000 equipment finance agreement, rates vary based on your credit profile, the asset type, and the lender. Agreements commonly run between two and seven years, with monthly or quarterly repayments. Interest rates can be fixed or variable, and the total cost will depend on factors such as the age and expected lifespan of the equipment, your trading history, and whether you opt for a hire purchase, finance lease, or operating lease structure. Comparing multiple quotes is the best way to understand the rates available to your specific business.

Equipment finance uses the asset itself as security, which often means lower interest rates than an unsecured business loan where the lender takes on more risk. Unsecured loans may offer faster access to funds since no asset valuation is required, but borrowing limits tend to be lower and rates higher. With equipment finance, you also benefit from potential tax advantages — repayments on hire purchase agreements, for instance, may be treated as a business expense. The trade-off is that the equipment is tied to the finance until you have fully repaid the agreement, and you cannot sell or dispose of it without the lender's consent.

A wide range of business equipment can be financed, including manufacturing plant and machinery, commercial vehicles and HGVs, agricultural equipment, printing presses, construction plant, medical and dental equipment, IT infrastructure, and catering or hospitality fittings. Lenders generally prefer assets that hold their value well and have an active secondary market. Specialist or highly bespoke equipment may require a lender with expertise in your sector. The key requirement is that the equipment must be a tangible, identifiable asset that the lender can secure against.

Start by checking whether the lender has experience in your industry and with the type of equipment you need. Compare the total cost of finance, not just the headline rate — arrangement fees, documentation charges, and early settlement penalties can add up. Look at the flexibility of terms: can you structure repayments around seasonal cash flow? Is there an option to upgrade equipment mid-term? Read reviews and check the lender is FCA-authorised. A good provider should also be transparent about what happens at the end of the agreement, whether that means ownership transfer, return of the asset, or renewal options.