Top 10 Asset Finance for Sole Traders in 2026
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Top Asset Finance Lenders for Sole Traders
| Rank | Lender | Best for | Published loan range | Loan rate |
|---|---|---|---|---|
| 1 | Liberty Leasing | Sole traders funding vehicles or equipment from £10,000 | £10,000 to £2,000,000 | interest 11% to 16% annually |
| 2 | Lombard | Sole traders with one year of trading history | Up to £5,000,000 | interest 4% to 11.5% monthly |
| 3 | Reward Funding | Larger sole trader operations needing £100,000 or above | £100,000 to £5,000,000 | interest 0.99% to 3% monthly |
| 4 | Time Finance | Sole traders seeking flexible asset finance up to £5m | Up to £5,000,000 | interest 5.5% to 13.5% annually |
| 5 | Admiral leasing | Sole traders after low-minimum equipment leasing from £1,000 | From £1,000 | interest 5.5% to 13.5% annually |
| 6 | Barclays | Sole traders preferring high-street bank asset finance | £1,000 to £25,000,000 | interest 8.5% to 14.9% annually |
| 7 | Lloyds Bank | Sole traders wanting smaller bank-funded asset purchases | £1,000 to £50,000 | interest 10.65% to 11.2% annually |
| 8 | Acorn Business Finance | Sole traders with mid-range asset needs from £15,000 | £15,000 to £5,000,000 | interest 8% to 15% annually |
| 9 | Aldermore Asset finance | Newer sole traders with limited trading history | £1,000 to £10,000,000 | interest 5% to 15% annually |
| 10 | Close Brothers | More established operators with higher turnover levels | £25,000 to £100,000,000 | bespoke 3.5% to 10% monthly |
Asset finance lets sole traders spread the cost of vehicles, equipment, or machinery over time instead of paying the full amount upfront. The lender buys the asset and you repay in fixed instalments, with the asset itself acting as security. This structure works well for self-employed borrowers because it preserves working capital and keeps personal and business cash flow separate. For a sole trader acquiring a van, workshop tools, or production machinery, asset finance offers a practical funding route without tying up personal savings.
Comparing asset finance lenders means looking past the headline rate. Check whether the lender accepts sole traders with limited trading history; some want two years of accounts, others will consider newer self-employed applicants. Review the types of assets they finance, as not all funders cover older or specialist equipment. Look at the deposit requirement; some ask for a balloon payment or upfront contribution that affects monthly costs. Also confirm whether the lender reports to personal credit bureaus, which can matter more for sole traders than for limited companies.
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.
Liberty Leasing
Published loan range£10,000 to £2,000,000
Rate typeinterest 11% to 16% annually
Overview: A sole trader chasing a quick purchase will value Liberty Leasing's 24-hour funding turnaround. Asset finance uses the equipment or vehicle as security, which can open doors for self-employed applicants whose trading history is still building. The minimum facility of £10,000 keeps smaller deals on the table.
Best next step: Check Liberty Leasing eligibility
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- 24-hour funding on most applications
- Facilities from £10,000 to £2 million
- Asset-secured rather than guarantee dependent
Need to know
- Asset valuation may be required before approval
- Rates sit between 11% and 16% annually
- Deposit may be needed on some transactions
Expert take
An independent asset finance specialist that moves at alternative-lender speed. Sole traders benefit from the asset-backed model — Liberty judges the equipment and your ability to service the payments rather than demanding years of accounts.
Lombard
Published loan rangeUp to £5,000,000
Rate typeinterest 4% to 11.5% monthly
Overview: Lombard's rates begin at 4% monthly, which can keep payments manageable for a sole trader financing a single vehicle or piece of machinery. As part of the NatWest group, Lombard brings institutional backing and deep experience across most asset classes. Facilities stretch up to £5 million if the business scales.
Best next step: Explore Lombard asset finance
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Backed by NatWest Group stability
- Lends up to £5 million per facility
- Wide asset class acceptance
Need to know
- Monthly rate structure applies to the facility
- Sole trader applications assessed case by case
- Deposit contribution likely on most deals
Expert take
A big-bank asset finance arm with decades of underwriting data behind it. Sole traders with clean bank statements and a solid asset proposal can access institutional pricing that independent lenders rarely match. The process is thorough but fair.
Source:https://www.lombard.co.uk/
Reward Funding
Published loan range£100,000 to £5,000,000
Rate typeinterest 0.99% to 3% monthly
Overview: Reward Funding operates a revolving credit-style asset finance facility, which means a sole trader can draw, repay, and redraw against a pre-agreed limit rather than applying for each new piece of equipment. The structure suits seasonal businesses where income peaks and dips. Minimum facilities start at £100,000.
Best next step: Check Reward Funding eligibility
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Revolving facility reduces repeat applications
- Rates from 0.99% monthly on drawn funds
- Lends across equipment, vehicles, and machinery
Need to know
- Minimum facility size is £100,000
- Security and valuation costs may apply
- Limits can be reviewed or adjusted
Expert take
A revolving asset finance provider that suits growth-minded sole traders. The drawdown model removes friction from repeat equipment purchases, and the low monthly rate rewards disciplined facility management. Best matched to capital needs above £100,000.
Source:https://rewardfunding.co.uk/
Time Finance
Published loan rangeUp to £5,000,000
Rate typeinterest 5.5% to 13.5% annually
Overview: Time Finance serves sole traders who invoice other businesses and need a combined approach — invoice finance to unlock tied-up cash alongside asset finance for vehicles or kit. Annual rates from 5.5% keep costs predictable. The facility ceiling of £5 million accommodates growth without needing to switch lenders.
Best next step: View Time Finance options
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Combined invoice and asset finance available
- Annual interest from 5.5% for certainty
- Up to £5 million facility size
Need to know
- Invoice finance requires B2B customer base
- Asset finance tied to specific equipment
- Facility review possible with usage changes
Expert take
A dual-product lender that understands sole trader cash flow. Combining invoice and asset finance under one roof reduces admin and can unlock better terms than splitting across providers. Strong fit for B2B self-employed traders.
Source:https://www.timefinance.com/
Admiral leasing
Published loan rangeFrom £1,000
Rate typeinterest 5.5% to 13.5% annually
Overview: Admiral leasing can turn around an equipment finance decision in as little as four hours — the fastest on this list. For a sole trader who has found a vehicle or machine and needs to complete before it goes to another buyer, that speed is decisive. Facilities start from just £1,000.
Best next step: Get a decision in hours
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Funding decisions in four hours
- Facilities available from £1,000
- Annual rates from 5.5% to 13.5%
Need to know
- Equipment age and type affect terms
- Sole trader income must be evidenced
- Not all asset categories accepted
Expert take
A rapid-response leasing firm for urgent equipment purchases. Sole traders who spot a deal and need to move before the weekend will find Admiral's four-hour decision window hard to beat. The low entry point helps first-time applicants.
Barclays
Published loan range£1,000 to £25,000,000
Rate typeinterest 8.5% to 14.9% annually
Overview: Existing Barclays customers can lean on their banking relationship during asset finance applications — the lender already holds transaction data, cutting down paperwork. Rates run from 8.5% annually and the lending band stretches from £1,000 to £25 million, covering everything from a laptop to heavy plant machinery.
Best next step: Check Barclays asset finance
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Existing customer data speeds decisions
- Wide lending range suits any asset
- Annual percentage rates are transparent
Need to know
- Bank underwriting can take longer
- Trading history requirements may apply
- Personal guarantee often requested
Expert take
A high-street bank with asset finance expertise built over decades. Sole traders with a Barclays current account gain an underwriting edge, though the process is more formal than with alternative lenders. Suited to straightforward, well-documented applications.
Lloyds Bank
Published loan range£1,000 to £50,000
Rate typeinterest 10.65% to 11.2% annually
Overview: Lloyds Bank publishes a tight annual rate band of 10.65% to 11.2% on asset finance, which gives a sole trader cost certainty without worrying about being priced at the top end. The maximum facility is £50,000 — enough for a van, small machinery, or fit-out equipment. Funding typically takes 48 hours.
Best next step: Explore Lloyds Bank rates
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Narrow, predictable rate band
- Facilities available from £1,000
- Suitable for vehicles and equipment
Need to know
- Funding speed is around 48 hours
- Ceiling capped at £50,000
- Bank criteria apply to sole traders
Expert take
A predictable-cost lender for smaller asset purchases. Sole traders who value rate certainty over speed will appreciate Lloyds' tight pricing band. The £50,000 cap keeps the focus on modest vehicle and equipment deals that suit self-employed budgets.
Acorn Business Finance
Published loan range£15,000 to £5,000,000
Rate typeinterest 8% to 15% annually
Overview: Acorn Business Finance writes asset facilities from £15,000 to £5 million, bridging the gap between entry-level funders and large-ticket lenders. A sole trader financing a mid-range commercial vehicle or a set of workshop equipment fits neatly into this band. Annual rates run from 8% to 15%.
Best next step: Compare Acorn Business Finance
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Mid-to-large facility specialist
- Annual interest from 8% available
- 24-hour indicative terms turnaround
Need to know
- Minimum facility is £15,000
- Asset type influences rate offered
- Sole trader income verification needed
Expert take
A broad-range asset funder handling deals many small-ticket lenders pass on. Sole traders financing higher-value equipment or specialist vehicles will find Acorn's £15,000 floor and £5 million ceiling comfortable. The rate band rewards stronger applications.
Aldermore Asset finance
Published loan range£1,000 to £10,000,000
Rate typeinterest 5% to 15% annually
Overview: Aldermore's asset finance offering covers an unusually wide band — from £1,000 to £10 million — which means a sole trader can start small and return for larger facilities as the business grows. Annual rates from 5% are competitive for well-maintained assets. Funding typically completes within 48 hours.
Best next step: View Aldermore rates
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Massive lending range up to £10m
- Rates start from 5% annually
- Accepts a broad spread of assets
Need to know
- Funding turnaround around 48 hours
- Asset condition affects approval
- Sole trader criteria apply individually
Expert take
A versatile lender that scales from micro-deals to seven-figure facilities. Sole traders benefit from Aldermore's willingness to look at smaller transactions without losing access to larger funding later. The rate spread rewards well-presented applications.
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: At the upper end of the market sits Close Brothers, with a lending ceiling of £100 million and bespoke monthly rates from 3.5%. A sole trader needs strong financials to get a look in — the lender typically serves firms turning over £500,000 or more — but decisions still come within 24 hours.
Best next step: Check Close Brothers eligibility
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Enormous lending capacity available
- Bespoke rates reward strong applications
- 24-hour decision timeline typical
Need to know
- Typical fit is £500k+ turnover firms
- Minimum facility size is £25,000
- Sole trader applications reviewed individually
Expert take
A heavyweight asset funder geared toward larger, established businesses. Sole traders with strong books and a clear asset proposal can access facilities that outstrip most competitors' ceilings. Year-end accounts and bank statements will carry weight here.
Asset Finance Calculator
How asset finance works for sole traders
Asset finance lets sole traders spread the cost of vehicles, equipment, or machinery over time rather than paying upfront. The lender buys the asset and you repay in fixed instalments.
The two main structures are hire purchase and leasing. With hire purchase, you own the asset after the final payment. With a finance lease, you rent the asset for an agreed term and hand it back or extend at the end.
Most asset finance lenders on this list serve sole traders. Minimum facilities start as low as £1,000 with lenders such as Barclays, Lloyds Bank, and Aldermore, while maximum limits reach into the millions. Liberty Leasing and Time Finance publish upper limits of £2,000,000 and £5,000,000 respectively.
The asset itself acts as security, which often makes asset finance easier to access than unsecured borrowing for self-employed applicants.
Tax benefits of asset finance for sole traders
Sole traders can claim capital allowances on assets financed through hire purchase or outright purchase. The Annual Investment Allowance lets you deduct the full cost of qualifying plant and machinery from your taxable profit in the year of purchase, up to the current AIA limit.
Where AIA is not available or has been used up, writing down allowances apply at 18% per year for main rate assets and 6% for special rate assets.
Finance lease payments are treated differently. Instead of capital allowances, you deduct the lease rental payments as a trading expense. This can smooth tax relief across the lease term rather than front-loading it.
VAT-registered sole traders can reclaim VAT on hire purchase assets upfront. On a finance lease, VAT is reclaimed on each rental payment as it falls due. This difference can affect cash flow, so it is worth factoring into your decision between lease and HP.
Always speak to your accountant before choosing a structure. Tax treatment depends on your individual circumstances.
What sole traders should compare when choosing asset finance
Beyond the headline rate, sole traders should compare several factors side by side.
| Lender | Rate range | Min facility | Max facility |
|---|---|---|---|
| Aldermore | 5% to 15% annually | £1,000 | £10,000,000 |
| Close Brothers | 3.5% to 10% monthly | £25,000 | £100,000,000 |
| Reward Funding | 0.99% to 3% monthly | £100,000 | £5,000,000 |
| Liberty Leasing | 11% to 16% annually | £10,000 | £2,000,000 |
Deposit expectations vary. Aldermore publishes 100% LTV, meaning no deposit may be needed. Close Brothers caps LTV at 90% and Reward Funding at 85%, so a contribution from you is more likely. Personal guarantees are common. Liberty Leasing, Time Finance, Aldermore, Close Brothers, and Reward Funding all require them. Most lenders on this list do not require homeownership as a condition either.
Tips to improve asset finance approval as a sole trader
Sole traders often face more scrutiny than limited companies because business and personal finances are intertwined. Lenders want to see clear separation and reliable income.
Keep your SA302 tax calculations and tax year overviews ready. Most lenders will ask for at least one year of these documents. Aldermore considers applications from sole traders with as little as six months of trading, while Lombard and Close Brothers ask for at least one year.
Bank statements matter. Lenders look for consistent incoming payments and responsible cash management. Avoid unauthorised overdrafts in the months before applying.
A deposit can strengthen your application. Even when 100% LTV is available, contributing 10% or more shows commitment and reduces the lender's exposure. If your turnover is modest, focus on lenders with lower thresholds. Lombard requires £25,000 in turnover, while Aldermore publishes no minimum turnover requirement at all.
A personal guarantee is almost always required for sole trader asset finance. Be prepared for this and understand what it means before you sign.
