Top 10 £400,000 Equipment Finance Lenders UK for 2026
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Top 10 Lenders for £400,000 Equipment Finance Compared
| Rank | Lender | Best for | Published loan range | Loan rate |
|---|---|---|---|---|
| 1 | Reward Funding | Established businesses funding large-scale equipment with competitive monthly rates | £100,000 to £5,000,000 | interest 0.99% to 3% monthly |
| 2 | Liberty Leasing | Mid-market firms needing fast asset finance decisions across diverse equipment | £10,000 to £2,000,000 | interest 11% to 16% annually |
| 3 | Lombard | Businesses wanting flexible asset finance backed by a major banking group | Up to £5,000,000 | interest 4% to 11.5% monthly |
| 4 | Time Finance | Growing companies seeking tailored asset finance with annual rate pricing | Up to £5,000,000 | interest 5.5% to 13.5% annually |
| 5 | Admiral leasing | Firms needing rapid equipment lease quotes across all asset sizes | From £1,000 | interest 5.5% to 13.5% annually |
| 6 | Barclays | Businesses preferring asset finance from a high-street banking provider | £1,000 to £25,000,000 | interest 8.5% to 14.9% annually |
| 7 | Acorn Business Finance | Mid-to-large firms wanting broker-led asset finance for complex purchases | £15,000 to £5,000,000 | interest 8% to 15% annually |
| 8 | Propel Finance | Businesses seeking flexible asset funding from small deals to major investments | From £500 | interest 5% to 20% annually |
| 9 | Aldermore Asset finance | Companies wanting specialist asset finance from an established challenger bank | £1,000 to £10,000,000 | interest 5% to 15% annually |
| 10 | Close Brothers | Well-established firms funding major machinery or vehicle acquisitions | £25,000 to £100,000,000 | bespoke 3.5% to 10% monthly |
Asset finance lets businesses spread the cost of equipment, machinery and vehicles over a fixed term rather than paying the full amount upfront. The lender purchases the asset and you repay in instalments, preserving working capital for daily operations. For established UK businesses acquiring high-value kit, this approach keeps cash flow predictable while securing essential assets. A £400,000 facility can fund anything from a commercial vehicle fleet to a complete production line.
Comparing lenders at this level goes well beyond the headline rate. Interest structure matters most: some lenders quote monthly rates while others use annual figures, so always convert to a like-for-like comparison. Check whether the funder specialises in your equipment type, as niche lenders often offer sharper pricing on assets they understand well. Repayment flexibility, early settlement terms and seasonal payment structures all shape the true cost of a facility.
Important note:
Funding Agent
Published loan rangeFrom £10,000 to up to £1,000,000
Rate typeInterest from 6.8% annually
Why it is included:It is included because many business owners need to compare several finance routes before choosing where to apply.
Funding Agent can help businesses compare suitable options across a lender panel, especially when eligibility depends on turnover, sector, trading history, credit strength and available documents.
Best use case: When the borrower wants to avoid applying to one lender at a time.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Why it stands out
- Useful when a business wants to compare lender fit rather than guess which lender to apply to first.
- Can help position the application around the funding purpose, trading profile and available documents.
- Works well as a conversion route for readers who are unsure whether a direct lender will approve a larger unsecured facility.
Need to know
- Funding Agent is a broker, not a lender.
- The lender, not Funding Agent, sets the final rate, term, fees and approval decision.
- The best match may be unsecured, secured, revolving credit, invoice finance or another product depending on the case.
Expert take
Funding Agent is a useful honourable mention for business owners who want to compare lender options before submitting a full application. A larger unsecured loan is not always approved by the first lender a business finds, so understanding lender fit early can reduce wasted time and avoid unnecessary declines.
Reward Funding
Published loan range£100,000 to £5,000,000
Rate typeinterest 0.99% to 3% monthly
Overview: Reward Funding writes asset finance facilities from £100,000 to £5 million, approving deals against machinery, vehicles and productive assets. Funding typically lands within 24 hours. Rates start at 0.99% monthly on a revolving credit structure that suits businesses planning staged equipment purchases rather than a single acquisition. Expect legal and valuation costs with this secured product.
Best next step: Compare revolving asset finance terms
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Revolving credit for staged equipment purchases
- Funding within 24 hours of approval
- Rates from 0.99% monthly
Need to know
- Secured facility with legal costs
- Asset valuation required before drawdown
- Facility limits can be reviewed or withdrawn
Expert take
A flexible asset-based lender that works well for established businesses funding machinery or vehicle fleets. For a £400,000 equipment purchase, the revolving structure gives breathing room if you plan to add assets over time rather than in one go.
Source:https://rewardfunding.co.uk/
Liberty Leasing
Published loan range£10,000 to £2,000,000
Rate typeinterest 11% to 16% annually
Overview: Annual rates from 11% to 16% make Liberty Leasing a cost-transparent option for a £400,000 equipment facility. The lender finances machinery, vehicles and productive assets, with facilities ranging from £10,000 to £2 million. Funding can land within 24 hours of approval. The asset itself secures the lending, so cash flow stays intact for other business needs.
Best next step: Check fixed-rate equipment finance options
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Fixed annual rates for predictable repayments
- Asset secures the borrowing directly
- Funding released within 24 hours
Need to know
- Deposits may be required on some assets
- Asset eligibility checks apply before approval
- Rates depend on asset type and condition
Expert take
A straightforward asset finance provider that keeps pricing in annual terms, which helps with cash-flow planning. For a £400,000 machinery or equipment purchase, the direct asset-security model removes the need for additional collateral.
Lombard
Published loan rangeUp to £5,000,000
Rate typeinterest 4% to 11.5% monthly
Overview: A 24-hour decision window makes Lombard a practical choice for time-sensitive £400,000 equipment purchases, with facilities reaching £5 million. Monthly rates run from 4% to 11.5%. Decades of asset finance underwriting mean Lombard's process is well-rehearsed for straightforward machinery and vehicle deals.
Best next step: Explore Lombard asset finance rates
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Decisions within 24 hours
- Facilities up to £5 million available
- Decades of asset finance underwriting
Need to know
- Asset must meet lender eligibility criteria
- Monthly rate structure applies
- Deposits or valuations may be needed
Expert take
A veteran in UK asset finance with the underwriting muscle to handle £400,000 equipment deals efficiently. The 24-hour decision window and high lending ceiling make it practical for businesses that know exactly what they need.
Source:https://www.lombard.co.uk/
Time Finance
Published loan rangeUp to £5,000,000
Rate typeinterest 5.5% to 13.5% annually
Overview: Predictable annual-rate repayments set Time Finance apart for a £400,000 equipment facility, with rates from 5.5% to 13.5% and ceilings up to £5 million. The lender also offers invoice finance alongside asset funding, which helps B2B firms managing both receivables and equipment investment. Decisions typically land within 24 hours.
Best next step: Compare asset and invoice finance options
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Predictable annual-rate repayments
- Invoice finance available alongside
- Decisions within 24 hours
Need to know
- Invoice finance suitability depends on debtors
- Asset eligibility checks apply
- Revolving limits can be reviewed
Expert take
A dual-product lender that works well for B2B businesses needing equipment finance and working capital under one roof. The annual-rate structure keeps costs predictable on a £400,000 asset purchase.
Source:https://www.timefinance.com/
Admiral leasing
Published loan rangeFrom £1,000
Rate typeinterest 5.5% to 13.5% annually
Overview: Decisions in as little as four hours set Admiral leasing apart for businesses that need to move quickly on a £400,000 equipment purchase. Annual rates run from 5.5% to 13.5%, with facilities starting at £1,000. The lender covers machinery, vehicles and business equipment. Stronger trading history helps on larger facilities.
Best next step: Request a quote from Admiral leasing
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Decisions in as little as 4 hours
- Rates from 5.5% annually
- Broad asset type coverage
Need to know
- Strong trading history expected for larger deals
- Asset valuation may be required
- Not all asset types qualify
Expert take
A responsive equipment leasing provider with a notably quick four-hour decision window. For a £400,000 purchase, the speed advantage helps if you need to secure an asset before a deadline.
Barclays
Published loan range£1,000 to £25,000,000
Rate typeinterest 8.5% to 14.9% annually
Overview: As a high-street bank with facilities up to £25 million, Barclays brings relationship-based underwriting that rewards existing customers with smoother processing and preferential terms on large equipment deals. Annual rates range from 8.5% to 14.9%. Bank processes may take longer than alternative lenders, but for established businesses the trade-off can be worth it.
Best next step: Check Barclays asset finance eligibility
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Facilities up to £25 million available
- Relationship pricing for existing customers
- Broad equipment and vehicle coverage
Need to know
- Bank underwriting can be slower
- Strong trading history typically required
- Personal guarantee may be requested
Expert take
A high-street bank with the balance sheet to handle large equipment purchases comfortably. For a £400,000 facility, existing Barclays customers often benefit from streamlined decision-making and relationship-based pricing.
Acorn Business Finance
Published loan range£15,000 to £5,000,000
Rate typeinterest 8% to 15% annually
Overview: With facilities spanning £15,000 to £5 million, Acorn Business Finance covers machinery, vehicles and specialist assets at annual rates of 8% to 15%. The lender also offers revolving credit, term loans and acquisition finance, useful if your equipment purchase is part of a wider growth plan.
Best next step: Explore Acorn's multi-product offering
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Facilities up to £5 million
- Multiple finance products under one roof
- Covers specialist business assets
Need to know
- Larger deals need strong financials
- Asset type affects rate offered
- Valuation costs may apply
Expert take
A multi-product finance house that suits businesses whose £400,000 equipment purchase might be one part of a broader funding need. The product range means you are not locked into a single solution.
Propel Finance
Published loan rangeFrom £500
Rate typeinterest 5% to 20% annually
Overview: Competitive pricing from 5% annually rewards well-qualified businesses at Propel Finance. The lender funds equipment from £500 upwards, completing deals on larger machinery and vehicle purchases in two to five days. The asset itself backs the borrowing, keeping other business credit lines free for operational use.
Best next step: Compare Propel's asset finance rates
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Competitive rates for strong applicants
- Facilities from £500 to large-ticket
- Asset-backed preserves cash flow
Need to know
- Funding takes 2-5 days to complete
- Higher rates for riskier profiles
- Asset eligibility checks apply
Expert take
A volume-focused asset finance provider where rate competitiveness depends heavily on applicant strength. For a £400,000 purchase, well-established businesses can access the lower end of the 5% to 20% range.
Aldermore Asset finance
Published loan range£1,000 to £10,000,000
Rate typeinterest 5% to 15% annually
Overview: SME-friendly underwriting and rates from 5% annually make Aldermore a practical starting point for a £400,000 equipment facility. Funding up to £10 million is available, with completion typically within 48 hours. The lender serves businesses across most sectors, avoiding the niche restrictions some specialist lenders impose.
Best next step: Check Aldermore asset finance terms
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- SME-friendly underwriting approach
- Rates from 5% annually
- Broad sector acceptance
Need to know
- 48-hour funding timeline applies
- Asset type influences final rate
- Strong financials improve terms
Expert take
A mainstream SME lender with broad sector appetite and a £10 million upper limit. For a £400,000 equipment purchase, Aldermore's straightforward approach avoids the niche restrictions some specialist lenders impose.
Source:https://www.aldermore.co.uk/business/business-finance/asset-finance/
Close Brothers
Published loan range£25,000 to £100,000,000
Rate typebespoke 3.5% to 10% monthly
Overview: Bespoke negotiated pricing defines the Close Brothers approach to equipment finance, with facilities from £25,000 to £100 million and monthly rates from 3.5% to 10%. The lender targets established mid-market firms in transport, manufacturing and construction. Decisions come within 24 hours. A minimum turnover of £500,000 applies.
Best next step: Explore Close Brothers bespoke terms
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Bespoke pricing for mid-market firms
- Sector expertise in key industries
- Decisions within 24 hours
Need to know
- £500,000 minimum turnover required
- Sector focus may exclude some businesses
- Negotiated rates, not published pricing
Expert take
A mid-market specialist with genuine sector depth in transport, manufacturing and construction. For a £400,000 equipment purchase, the bespoke pricing model rewards businesses that fit its industry sweet spot.
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How asset finance works for a £400,000 equipment purchase
When you finance £400,000 of equipment through asset finance, the equipment itself serves as security for the lender. This means you do not need to offer property or other business assets as collateral. The lender buys the equipment on your behalf, and you repay the cost plus interest over an agreed term.
Two main structures exist at this level. With hire purchase, you own the asset after the final payment. With a finance lease, the lender retains ownership and you rent the asset for its working life. Some lenders on this list, including Propel Finance and Aldermore Asset finance, offer up to 100% loan-to-value, meaning no deposit is required. Others, such as Reward Funding, cap LTV at 85%, so you would need to put down roughly £60,000 on a £400,000 purchase.
Repayment schedules are typically monthly and fixed, making cash flow planning straightforward. Lenders structure terms between one and seven years for most equipment types.
What interest rates and terms to expect on £400,000 equipment finance
Interest rates on £400,000 equipment finance vary notably across the market. Annual rates start around 5% and can reach 20%, depending on your business profile and the asset being funded. Propel Finance publishes rates from 5% to 20% per year, while Aldermore Asset finance and Acorn Business Finance both fall within the 5% to 15% per year band. Liberty Leasing quotes 11% to 16% per year, and Barclays sits between 8.5% and 14.9% per year.
Some specialist lenders quote monthly rates instead. Reward Funding advertises rates from 0.99% to 3% per month, and Close Brothers publishes bespoke rates from 3.5% to 10% per month.
| Lender | Rate range | Max LTV |
|---|---|---|
| Reward Funding | 0.99% to 3% per month | 85% |
| Liberty Leasing | 11% to 16% per year | Not confirmed |
| Close Brothers | 3.5% to 10% per month | 90% |
| Propel Finance | 5% to 20% per year | 100% |
Term lengths for £400,000 facilities typically run between one and seven years. A longer term reduces monthly payments but increases total interest cost. Most lenders fix the rate for the full term, protecting you from rate rises.
Tax benefits of financing £400,000 of equipment through asset finance
Financing equipment rather than buying outright can improve your tax position. Under hire purchase, you claim capital allowances on the full asset cost from day one, even while paying in instalments. The Annual Investment Allowance lets you deduct the full value of qualifying plant and machinery from taxable profits, up to £1 million per year.
With a finance lease, rental payments count as a trading expense. You deduct each payment from pre-tax profit annually. Both routes reduce your corporation tax bill, though the treatment differs.
VAT also varies by agreement type. On hire purchase, you reclaim VAT on the asset cost upfront through your next VAT return. On a lease, you reclaim VAT on each rental payment as you go. This helps cash flow if you report VAT monthly or quarterly. Speak to your accountant about which structure fits your business. The lease versus hire purchase decision affects both your balance sheet and annual tax calculations.
How to improve your approval chances for £400,000 equipment finance
Lenders look closely at trading history, turnover, and asset type when assessing a £400,000 application. Most specialist lenders expect at least one year of trading. Close Brothers requires a minimum of one year and £500,000 in annual turnover. Lombard asks for one year of trading and £25,000 in turnover, making it accessible to smaller established businesses.
A personal guarantee is standard at this level. Reward Funding, Liberty Leasing, Time Finance, Aldermore Asset finance, and Close Brothers all require one. This means you accept personal liability if the business cannot repay. The guarantee amount is often capped at a percentage of the facility.
Prepare detailed management accounts and bank statements before applying. Lenders at £400,000 want to see consistent revenue and a clear use for the equipment. If the asset is specialist or has limited resale value, expect tighter terms or a lower LTV. Using a broker saves time and can improve the rate and LTV you are offered, which matters at this facility size where small rate differences have a large impact across the term.
