Top 10 £700,000 Plant Finance Lenders UK 2026

Plant finance at this level typically works as a hire purchase or finance lease agreement. With hire purchase, the lender buys the machinery on your behalf and you pay fixed monthly instalments over an agreed term, usually between two and seven years. At the end of the term you own the asset outright. A finance lease works similarly but the asset remains with the lender and you can continue using it on a secondary rental or sell it and retain a share of the proceeds. For £700,000 facilities, lenders will take a charge over the plant itself as security, which often makes approval more straightforward than unsecured borrowing.

Lenders typically look for established UK businesses with at least two years of trading history and filed accounts. You will need to demonstrate sufficient turnover to comfortably service the monthly repayments — many lenders expect annual turnover of at least two to three times the facility value. The plant itself also plays a role; it should be identifiable, insurable, and have a clear resale value. Most lenders will also review your credit history and may ask for director guarantees, particularly on larger facilities like this.

Rates on asset-backed plant finance are generally more competitive than unsecured loans because the machinery itself reduces the lender's risk. For a £700,000 facility, terms typically range from two to seven years, matching the expected working life of the asset. Interest rates can be fixed or variable and will depend on factors including your business credit profile, trading history, the type of plant being financed, and the deposit you are able to put down. A larger deposit often helps secure a lower rate. Arrangement fees may also apply and should be factored into your overall cost comparison.

Plant finance is specifically tied to the machinery you are buying, which means the asset itself acts as the primary security. This often results in faster decisions and more favourable rates compared to a general secured business loan, where you might need to offer property or other assets as collateral. A term loan gives you more flexibility on how you spend the funds but typically comes with stricter lending criteria and potentially higher rates for the same amount. For a £700,000 plant purchase, dedicated asset finance is usually the most cost-effective route because the lender's risk is directly linked to a tangible, resaleable asset they can assess and value.

At the £700,000 level, you should look beyond the headline rate. Key factors include: whether the lender specialises in your type of plant and understands its true value, the flexibility of repayment structures including seasonal or stepped payment options, transparency on fees such as early settlement charges and documentation costs, the speed of their credit decisions and drawdown process, and whether they offer fixed-rate options to protect against interest rate rises. It is also worth checking if the provider is FCA-regulated and what their track record is with businesses of your size and sector. Using a specialist broker with access to multiple lenders can help you compare like-for-like quotes.

Timelines vary by lender and the complexity of your application. In straightforward cases where your business has clean accounts and the plant is standard equipment with a clear valuation, you could receive a credit decision within a few days and complete the drawdown in two to four weeks. More complex situations, such as imported or highly specialised machinery, may take longer due to additional valuation requirements. Having your documents ready — including two years of filed accounts, bank statements, details of the plant you are purchasing, and management information — can significantly speed up the process.