Top 10 Lenders for £400,000 Plant Finance in the UK (2026)

Plant finance is a form of asset finance that lets your business acquire machinery or equipment without paying the full cost upfront. With a £400,000 facility, a lender typically purchases the plant on your behalf and you repay the cost plus interest over a fixed term, usually through monthly instalments. The asset itself serves as security, which means you may not need to offer additional collateral. At the end of the agreement, ownership of the machinery transfers to your business once all payments have been made. This structure helps preserve working capital while still giving you immediate use of the equipment your operations depend on.

Eligibility varies by lender, but most providers look at your business's trading history, credit profile, and financial health. Typically, you will need to have been trading for at least 12 to 24 months and demonstrate that your business can comfortably afford the monthly repayments. Lenders will review your management accounts, bank statements, and sometimes your filed accounts. Because the plant itself acts as security, the asset's resale value is also a key consideration. Some specialist lenders are more flexible with newer businesses or those with less-than-perfect credit, though rates may reflect the additional risk.

Plant finance agreements for £400,000 are typically structured over terms ranging from 2 to 7 years, depending on the expected lifespan of the machinery. Interest rates can be fixed or variable and are influenced by factors including your business's credit rating, the age and type of equipment, and the length of the agreement. Because rates vary widely between lenders and are tailored to individual circumstances, it is always worth comparing multiple quotes. Some agreements may also require a deposit, though many lenders offer 100% financing on new plant. Always ask for the total cost of finance, not just the headline rate, so you can make a fair comparison.

Plant finance, secured business loans, and term loans can all be used to fund equipment purchases, but they work differently. With plant finance, the machinery itself secures the borrowing and the lender often pays the supplier directly. A secured business loan may use other assets like property or existing equipment as collateral and provides a cash lump sum to spend as you wish. A term loan typically gives you a fixed amount repaid over a set period and may or may not be secured. Plant finance is often quicker to arrange for equipment purchases because the asset is clearly identified and valued, whereas term loans can offer more flexibility if you are funding multiple items or broader business investments.

When choosing a plant finance provider for a £400,000 facility, consider the lender's experience in your industry and with the type of machinery you are purchasing. Look at the total cost of finance, not just the monthly repayment, and check for any arrangement fees, early settlement penalties, or hidden charges. Speed of decision-making matters too, especially if you need to secure equipment quickly. Check whether the lender offers fixed or variable rates and how flexible they are with seasonal or irregular payment structures. Reading reviews and asking about their underwriting process can also give you a sense of how straightforward the application is likely to be.

Yes, most plant finance providers in the UK will fund both new and used machinery, including equipment purchased at auction. For new plant, lenders can often offer more competitive rates and longer terms because the asset holds its value better and comes with manufacturer warranties. Used machinery is also widely financeable, though lenders may cap the term based on the equipment's age and expected remaining useful life. You may be asked to provide an independent valuation or service history for older or higher-value second-hand plant. If you are buying used machinery, working with a lender that has experience in your sector can help ensure a smoother valuation and approval process.