Top 10 Lenders to Secure £350,000 Machinery Finance in 2026

Machinery finance is a type of asset finance where a lender provides the funds to purchase the equipment you need, and the machinery itself acts as security for the agreement. You will typically pay an initial deposit (often around 10 to 20 per cent of the asset value), then repay the remaining balance plus interest in fixed monthly instalments over an agreed term. Once all payments are made, full ownership of the machinery transfers to your business. Alternatives like hire purchase and finance lease work similarly but differ in how ownership and VAT are treated, so it is worth discussing which structure best suits your accounting position with a broker or lender.

Lenders will typically look for an established business with a solid trading history — usually a minimum of two years, though some may accept less. You will need to demonstrate sufficient turnover and profitability to comfortably cover the monthly repayments. Your business credit profile and the financial health of your company will also be assessed. Some lenders may request sight of management accounts, bank statements, and details of existing borrowing. For a £350,000 facility, the asset itself also needs to be acceptable as security, meaning it should be standard plant or industrial equipment with a clear resale value, not highly bespoke or specialist kit that would be difficult to remarket.

Interest rates and terms vary considerably depending on your business credit profile, the type and age of the machinery, and the lender you choose. Terms for machinery finance commonly range from one to seven years, with repayments structured to match the expected useful life of the asset. Your rate will be influenced by factors such as your trading history, sector, asset type, and whether you are putting down a deposit. Generally, the stronger your financial position and the more standard the equipment, the more competitive the rate you are likely to be offered. Always ask for the total cost of credit, not just the headline rate, so you can make a fair comparison between providers.

With machinery finance, the equipment you are buying serves as the primary security, which can make it easier to obtain than a conventional secured business loan — particularly if you do not wish to tie up property or other business assets. A term loan gives you a lump sum to use as you see fit, but the lender may require a debenture or personal guarantee as security. Machinery finance is purpose-specific, meaning the funds go directly to the equipment supplier, which gives the lender comfort and can result in faster approval. A secured business loan may offer slightly longer terms or different rate structures, but machinery finance is often the more straightforward route when the sole aim is acquiring plant or heavy equipment.

Look for a lender or broker with genuine experience in asset finance and, ideally, familiarity with your industry sector. Check whether they are FCA-authorised and ask about their panel of funding partners if using a broker. Transparency around rates, fees, and early settlement terms is essential — you want a provider who will walk you through the full cost of borrowing without hidden charges. Flexibility can also be valuable; some lenders offer seasonal payment profiles or the ability to add further assets to an existing facility. Finally, pay attention to turnaround times and the quality of their credit underwriting, as a lender who understands machinery assets is far more likely to give you a sensible decision quickly.

It is more challenging but not impossible. Most mainstream asset finance lenders prefer businesses with at least two years of filed accounts, so a start-up would typically need to demonstrate strong alternative credentials — such as a proven track record from directors in the same industry, a robust business plan, or substantial cash reserves. Some specialist lenders and development finance providers may consider start-up applications for larger machinery purchases if there is additional security available or if directors are willing to provide personal guarantees. In these situations, working with an experienced asset finance broker who understands which lenders are open to younger businesses can significantly improve your chances.