Top 10 Lenders to Secure £850,000 Machinery Finance in 2026

Machinery finance at this level is a form of asset finance where a lender provides the funds to purchase equipment, and the machinery itself serves as security for the agreement. You typically pay a deposit, then make fixed monthly repayments over an agreed term, usually between two and seven years. At the end of the term, you own the asset outright. Alternatively, some providers offer leasing arrangements where you rent the machinery without taking ownership, which can offer tax advantages and lower upfront costs. The lender will assess your business financials, the machinery's value and useful life, and your repayment capacity before approving the facility.

Most UK limited companies, LLPs, and sole traders with at least two years of trading history are eligible to apply. Lenders will look at your annual turnover, which typically needs to comfortably cover the proposed repayments, and your credit history. The machinery being financed should be critical to your operations and have a clear resale value. Businesses in manufacturing, construction, engineering, agriculture, printing, and logistics are common candidates. Some specialist lenders may also consider younger businesses if the directors have strong personal credit profiles or if additional security can be provided.

Interest rates for machinery finance of this size vary depending on your business profile, credit history, the type of machinery, and the length of the agreement. Terms commonly range from two to seven years, though some lenders may extend to ten years for heavy machinery with a long useful life. You can expect to pay a deposit of around 10% to 20% of the machinery's value, though some lenders may offer zero-deposit options for well-established businesses. Rates are typically quoted as fixed for the life of the agreement, giving you predictable monthly repayments. Always compare the total cost of finance across providers rather than focusing on the headline rate alone.

The main difference is that machinery finance is tied directly to the specific asset being purchased, whereas a secured business loan may use other assets like property or a debenture as security. With machinery finance, the equipment serves as its own collateral, which can make underwriting more straightforward and often results in faster approval. Term loans offer more flexibility on how you use the funds but may require stronger credit profiles or additional security for amounts of £850,000. Machinery finance can also offer tax benefits through capital allowances, and if structured as a lease, the repayments may be fully deductible as an operating expense.

Look beyond the interest rate and consider the total cost of finance, including any arrangement fees, documentation fees, or early settlement charges. Check whether the lender has experience financing your type of machinery, as specialists often offer better terms and a smoother process. Assess their flexibility on seasonal or stepped repayment structures if your business has uneven cash flow. Review their speed from application to payout, as machinery purchases are often time-sensitive. Finally, check independent reviews and whether they are FCA-authorised. A broker can help you compare multiple providers without multiple credit searches.

It is more difficult but not impossible. Startups and businesses with adverse credit will need to demonstrate strong mitigating factors, such as experienced directors with a track record, a robust business plan with clear revenue projections, or the willingness to provide a larger deposit, sometimes up to 30% or more. Some specialist lenders and asset finance brokers work specifically with businesses that have credit challenges. In some cases, offering additional security or a personal guarantee from directors can strengthen an application. Expect rates to be higher than those offered to established businesses with clean credit.