Top £400,000 Machinery Finance Lenders UK 2026
.png)
Top 10 Lenders for £400,000 Machinery Finance
| Rank | Lender | Best for | Published loan range | Loan rate |
|---|---|---|---|---|
| 1 | Reward Funding | Manufacturers and engineering firms funding production-line machinery | £100,000 to £5,000,000 | interest 0.99% to 3% monthly |
| 2 | Liberty Leasing | Businesses preferring transparent annual rates on machinery finance | £10,000 to £2,000,000 | interest 11% to 16% annually |
| 3 | Lombard | Established traders requiring machinery-backed finance with competitive rates | Up to £5,000,000 | interest 4% to 11.5% monthly |
| 4 | Time Finance | Firms needing annual-rate machinery finance with flexible upper limits | Up to £5,000,000 | interest 5.5% to 13.5% annually |
| 5 | Admiral leasing | Operators wanting rapid machinery finance decisions from £1,000 upward | From £1,000 | interest 5.5% to 13.5% annually |
| 6 | Barclays | Companies preferring a major bank for large-scale machinery funding | £1,000 to £25,000,000 | interest 8.5% to 14.9% annually |
| 7 | Acorn Business Finance | Mid-market firms financing specialist machinery between £15,000 and £5,000,000 | £15,000 to £5,000,000 | interest 8% to 15% annually |
| 8 | Propel Finance | Businesses needing machinery finance from £500 for varied equipment types | From £500 | interest 5% to 20% annually |
| 9 | Aldermore Asset finance | Companies funding larger machinery purchases with a wide lending range | £1,000 to £10,000,000 | interest 5% to 15% annually |
| 10 | Close Brothers | High-revenue firms acquiring major plant and machinery up to £100,000,000 | £25,000 to £100,000,000 | bespoke 3.5% to 10% monthly |
Asset finance lets you spread the cost of machinery over time, using the equipment itself as security for the funding. This structure works well for established businesses looking to acquire heavy plant, production lines, or specialist vehicles without depleting cash reserves or offering additional collateral. A £400,000 machinery purchase becomes manageable when repayments align with the asset's useful life and revenue generation, making asset finance a natural fit for capital-intensive upgrades.
Comparing lenders for machinery finance goes beyond the headline interest rate. Check whether the rate is quoted monthly or annually, as this changes the true cost meaningfully at six-figure borrowing levels. Assess the maximum loan-to-value ratio each lender offers against your chosen machinery. Repayment flexibility matters: some lenders match terms to the asset's working life, while others impose fixed repayment schedules. Ask if the lender has experience with your machinery type; specialist underwriters handle technical valuations more efficiently.
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 structures asset finance facilities from £100,000 to £5,000,000, handling high-value machinery purchases with the equipment itself as security. Decisions can arrive within 24 hours for clean applications. The monthly interest model gives clear cost visibility but suits borrowers who can manage shorter compounding cycles.
Best next step: Generate offers
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Facilities from £100,000 to £5,000,000
- Asset-secured preserves existing bank lines
- Decisions within 24 hours
Need to know
- Monthly interest from 0.99% to 3%
- Asset valuation may be required
- Shorter cycles raise monthly cost
Expert take
A large-ticket asset funder built for businesses acquiring substantial machinery. The revolving credit structure gives established firms room to scale equipment investment without locking up all their working capital.
Source:https://rewardfunding.co.uk/
Liberty Leasing
Published loan range£10,000 to £2,000,000
Rate typeinterest 11% to 16% annually
Overview: With fixed annual rates from 11% to 16%, Liberty Leasing makes repayment costs predictable across the full term of a machinery purchase. Funding lands within 24 hours and the asset itself secures the facility. The annual pricing structure removes guesswork from long-term budgeting on heavy equipment.
Best next step: Generate offers
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Fixed annual rates for clear budgeting
- Funding within 24 hours
- Covers purchase and refinancing
Need to know
- Annual rates from 11% to 16%
- Asset eligibility checks apply
- Deposit may be required
Expert take
A no-nonsense asset finance house with an annual fixed-rate model. Transparent pricing and quick turnaround work in favour of businesses needing to lock in machinery costs without drawn-out underwriting.
Lombard
Published loan rangeUp to £5,000,000
Rate typeinterest 4% to 11.5% monthly
Overview: Decades of asset finance experience sit behind Lombard's machinery funding, with facilities up to £5,000,000 and the equipment serving as security. The lender can turn decisions around within 24 hours. As part of NatWest Group, it combines institutional backing with specialist asset finance underwriting.
Best next step: Generate offers
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Backed by NatWest Group
- Funding up to £5,000,000
- Specialist asset finance focus
Need to know
- Monthly interest from 4% to 11.5%
- Full underwriting applies
- Asset valuation expected
Expert take
An institutional asset finance house with deep machinery funding experience. The banking-group backing and specialist asset teams make this a credible route for established businesses acquiring production-critical equipment.
Source:https://www.lombard.co.uk/
Time Finance
Published loan rangeUp to £5,000,000
Rate typeinterest 5.5% to 13.5% annually
Overview: Annual rates from 5.5% to 13.5% make Time Finance a cost-competitive route for machinery purchases, with facilities up to £5,000,000. It blends asset finance with broader funding options including invoice finance. This dual capability suits businesses that want equipment funding and working capital management under one roof.
Best next step: Generate offers
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Annual rates from 5.5% to 13.5%
- Facilities up to £5,000,000
- Invoice finance also available
Need to know
- Asset valuation likely needed
- Underwriting checks apply
- Invoice finance has separate terms
Expert take
A flexible funder blending asset finance with working capital solutions. Businesses acquiring machinery while managing receivables gain from having both needs met through a single lending relationship.
Source:https://www.timefinance.com/
Admiral leasing
Published loan rangeFrom £1,000
Rate typeinterest 5.5% to 13.5% annually
Overview: Four-hour approvals set Admiral Leasing apart when speed matters on a machinery purchase. It covers equipment, vehicles, and heavy plant from £1,000 upwards, with annual rates from 5.5% to 13.5%. The rapid turnaround helps businesses that need to move quickly on time-sensitive equipment deals.
Best next step: See lender review
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Approvals in as little as 4 hours
- Covers diverse equipment types
- Funding from £1,000
Need to know
- Annual rates from 5.5% to 13.5%
- Asset eligibility must be met
- Deposit or guarantee possible
Expert take
A speed-focused equipment funder turning applications around in hours rather than days. The quick-decision model serves businesses well when machinery purchases cannot wait for lengthy credit committee processes.
Barclays
Published loan range£1,000 to £25,000,000
Rate typeinterest 8.5% to 14.9% annually
Overview: Barclays asset finance covers purchases from £1,000 to £25,000,000, backed by one of the UK's largest banking groups. For machinery acquisitions, the bank can structure terms aligned to asset life and business cash flow. Its wide product set means borrowers can consolidate other banking needs alongside equipment funding.
Best next step: See lender review
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Backed by a major UK bank
- Funding from £1,000 to £25,000,000
- Terms aligned to asset life
Need to know
- Annual rates from 8.5% to 14.9%
- Bank underwriting standards apply
- Full financial review expected
Expert take
A mainstream banking option for asset finance with the scale to handle substantial machinery deals. An integrated banking relationship works well for firms that value a single provider across their full financial picture.
Acorn Business Finance
Published loan range£15,000 to £5,000,000
Rate typeinterest 8% to 15% annually
Overview: From £15,000 to £5,000,000, Acorn Business Finance arranges asset funding across manufacturing, construction and specialist equipment. Annual rates from 8% to 15% give a clear cost picture. The lender structures facilities around the asset's earning life rather than applying a one-size-fits-all term.
Best next step: See lender review
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Manufacturing and construction focus
- Rates from 8% to 15% annually
- Asset-aligned repayment structures
Need to know
- Asset eligibility assessed case by case
- Deposit requirements vary
- Full financial review needed
Expert take
A broker-style asset funder with reach across manufacturing and construction. Matching repayment profiles to an asset's working life makes machinery finance more manageable for production-led businesses.
Propel Finance
Published loan rangeFrom £500
Rate typeinterest 5% to 20% annually
Overview: Equipment funding from £500 upwards makes Propel Finance accessible across a wide range of machinery purchases. Annual rates span 5% to 20%, signalling appetite for different credit profiles. Funding typically lands within two to five days, and the asset secures the facility throughout the term.
Best next step: See lender review
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Low minimum funding from £500
- Rates from 5% to 20% annually
- Asset-secured throughout term
Need to know
- Funding takes 2 to 5 days
- Asset valuation needed
- Eligibility assessed case by case
Expert take
An accessible asset funder whose broad rate band signals willingness to look beyond prime credit. The flexible entry point and annual pricing suit businesses wanting straightforward machinery finance without unnecessary complexity.
Aldermore Asset finance
Published loan range£1,000 to £10,000,000
Rate typeinterest 5% to 15% annually
Overview: A lending range of £1,000 to £10,000,000 covers the full spectrum of machinery and equipment purchases at Aldermore Asset Finance. Annual rates from 5% to 15% mean pricing can be competitive for stronger applications. Funding typically completes within 48 hours of approval, keeping procurement timelines tight.
Best next step: See lender review
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Wide range to £10,000,000
- Annual rates from 5% to 15%
- Funding within 48 hours
Need to know
- Full asset underwriting applies
- Financial history reviewed
- Deposit may be required
Expert take
A well-established asset finance lender with a broad funding range. The competitive rate floor and two-day turnaround work in favour of businesses with solid trading records acquiring mainstream machinery.
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: Manufacturing and construction experience runs deep at Close Brothers, funding asset purchases from £25,000 to £100,000,000. For machinery finance at this level, the lender brings sector-specific underwriting that understands equipment lifecycles, residual values, and seasonal cash flow patterns.
Best next step: See lender review
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Sector expertise in manufacturing
- Funding from £25,000 to £100m
- Bespoke pricing from 3.5% monthly
Need to know
- £500k turnover typically expected
- Monthly interest from 3.5% to 10%
- Full financial review required
Expert take
A mid-market specialist with genuine sector depth in manufacturing and construction. Bespoke pricing and asset-lifecycle understanding make this a strong fit for established firms acquiring production-critical machinery.
Asset Finance Calculator
How asset-backed machinery finance works for £400,000 purchases
When you borrow £400,000 through machinery finance, the equipment you purchase serves as security for the loan. This means you typically do not need to offer property or other business assets as collateral.
Lenders on this list advance between 85% and 100% of the machinery value. Propel Finance and Aldermore Asset Finance both offer up to 100% loan-to-value on qualifying assets. Close Brothers publishes a maximum LTV of 90%, while Reward Funding caps advances at 85%.
The lender pays the equipment supplier directly, and you repay in fixed instalments over an agreed term. You gain full use of the machinery immediately while spreading the cost across its working life.
Because the asset backs the facility, rates are typically more competitive than unsecured borrowing. Annual-rate lenders on this list range from 5% to 20% per year, while monthly-rate lenders quote from 0.99% to 11.5% per month.
What lenders assess for a £400,000 machinery finance application
Lenders underwriting a £400,000 machinery finance facility focus on three areas: the asset itself, your business finances, and your trading history.
The machinery's age, condition, and resale value carry significant weight. Newer equipment with a strong secondary market attracts better terms than specialised or bespoke machinery. Lenders need confidence they can recover value if the facility defaults.
Your turnover and time trading also influence approval. Aldermore Asset Finance considers applicants with six months of trading and no minimum turnover. Lombard requires at least one year of trading and £25,000 in annual turnover. Close Brothers sets a higher threshold at one year of trading and £500,000 turnover.
The table below shows how key requirements differ across selected lenders for a £400,000 application.
| Lender | Maximum LTV | Minimum trading |
|---|---|---|
| Aldermore Asset Finance | 100% | 6 months |
| Close Brothers | 90% | 1 year |
Repayment terms and tax benefits for £400,000 machinery finance
Repayment terms for £400,000 machinery finance are typically structured to match the expected working life of the equipment. Admiral Leasing offers terms from one to seven years. Barclays extends this significantly, with facilities running from one year up to 25 years for qualifying assets. Close Brothers and Aldermore Asset Finance both provide terms between one and seven years.
Longer terms reduce monthly payments but increase total interest costs. Shorter terms do the opposite. Choosing the right term means balancing cash flow against the total cost of borrowing.
Tax treatment is another important consideration. Under HMRC capital allowances, businesses can deduct the full cost of qualifying machinery from taxable profits in the year of purchase through the Annual Investment Allowance. For assets that do not qualify for AIA, writing down allowances spread the relief over several years. Lease rentals are typically fully deductible as a trading expense, which can simplify tax planning for some businesses.
Lease versus hire purchase for £400,000 machinery acquisitions
Businesses financing £400,000 of machinery face a key choice between hire purchase and leasing.
With hire purchase, you own the machinery at the end of the agreement after making all payments plus a small option-to-purchase fee. You claim capital allowances on the asset and show it on your balance sheet. The VAT on the purchase price is reclaimable upfront, though you must fund the VAT until your next return.
With a finance lease, you rent the machinery for a fixed period. You never own the asset, but rental payments are fully deductible as a trading expense. VAT on each rental payment is reclaimable as incurred, which eases cash flow compared to HP.
An operating lease works like a rental agreement without any purchase option. The lender retains ownership and residual risk, often resulting in lower monthly payments.
Your choice depends on whether ownership matters to your business and how you prefer to handle the asset on your balance sheet. Many lenders on this list offer both HP and lease structures for £400,000 machinery purchases.
