Top £600,000 Equipment Finance Lenders UK 2026

Equipment finance is a form of asset-backed lending where the equipment you are buying acts as security for the loan. For a £600,000 purchase, the lender typically pays the equipment supplier directly, and you repay the loan in fixed monthly instalments over an agreed term, usually between two and seven years. Once all payments are made, ownership of the equipment transfers fully to your business. Some arrangements, such as finance leases or hire purchase, may differ slightly in how ownership is handled, so it is worth discussing the structure that best suits your accounting and tax position with your provider.

Most UK lenders will expect your business to have at least two years of trading history, with filed accounts or management information demonstrating sufficient turnover to comfortably service the repayments. Because the equipment itself serves as security, lenders tend to be more flexible on eligibility compared to unsecured facilities. That said, for a £600,000 facility, you should expect the lender to review your cash flow, existing borrowing, and the nature of the asset being financed. Start-ups may find it harder to access this level of funding unless supported by strong personal guarantees or additional security.

Rates and terms vary significantly based on your business profile, the type of equipment, and the lender's risk appetite. Typical terms for asset finance of this size range from two to seven years, with repayments structured monthly, quarterly, or even seasonally for businesses with fluctuating income. Interest rates may be fixed or variable, and the overall cost will depend on factors such as your credit rating, trading history, and the expected residual value of the equipment. It is always advisable to request quotes from multiple providers and compare the total cost over the full term, not just the headline rate.

Both options use assets as security, but they work in different ways. Equipment finance is tied directly to a specific asset purchase, with the lender often paying the supplier directly and structuring the facility around that asset's lifespan. A secured business loan for £600,000 may give you more flexibility on how funds are used, but it could require broader security such as property or a debenture. Equipment finance can sometimes be quicker to arrange because the asset valuation is central to the underwriting, whereas a secured term loan may involve a more extensive review of your entire business. The right choice depends on whether you need funds solely for equipment or for wider business purposes.

For a facility of this size, you should prioritise lenders with experience in your specific industry and asset type, as specialist knowledge can lead to better terms and smoother underwriting. Look for transparency on rates, fees, and early settlement terms. Check whether the provider offers fixed or variable rates, and ask about their flexibility on payment structures, particularly if your business has seasonal income. It is also worth reviewing their funding speed and the level of personal service you will receive. Reading independent reviews and checking whether the lender is FCA-regulated are sensible steps before committing.

A wide range of business equipment can be financed, including heavy plant machinery, manufacturing lines, commercial vehicles, agricultural equipment, printing presses, medical devices, and construction plant. Lenders are generally comfortable with assets that hold their value well and have an active resale market, as this reduces their risk. Specialist or bespoke machinery may still be financeable but could require a higher deposit or shorter term. The key is to work with a provider who understands the asset class, as this often results in more competitive terms and a faster approval process.