Top 10 Engineering Finance Providers in the UK 2026
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Top 10 engineering finance providers compared
| Rank | Lender | Best for | Published loan range | Loan rate |
|---|---|---|---|---|
| 1 | Reward Funding | Larger engineering firms funding high-value production machinery and plant | £100,000 to £5,000,000 | interest 0.99% to 3% monthly |
| 2 | Liberty Leasing | Engineering businesses upgrading equipment with predictable annual-rate funding | £10,000 to £2,000,000 | interest 11% to 16% annually |
| 3 | Lombard | Established engineering firms seeking asset finance with flexible monthly terms | Up to £5,000,000 | interest 4% to 11.5% monthly |
| 4 | Time Finance | Growing engineering companies needing tailored asset funding up to £5M | Up to £5,000,000 | interest 5.5% to 13.5% annually |
| 5 | Admiral leasing | Smaller workshops and engineering contractors funding individual equipment | From £1,000 | interest 5.5% to 13.5% annually |
| 6 | Lloyds Bank | Engineering sole traders and micro-firms with modest equipment funding needs | £1,000 to £50,000 | interest 10.65% to 11.2% annually |
| 7 | Barclays | Engineering businesses at any scale needing wide-ranging asset finance | £1,000 to £25,000,000 | interest 8.5% to 14.9% annually |
| 8 | Rivers Leasing | Small engineering firms financing specialist tools and lighter machinery | £5,000 to £100,000 | interest 4% to 11.5% monthly |
| 9 | Aldermore Asset finance | Engineering startups and younger firms with limited trading history | £1,000 to £10,000,000 | interest 5% to 15% annually |
| 10 | Close Brothers | Large established engineering contractors with substantial asset requirements | £25,000 to £100,000,000 | bespoke 3.5% to 10% monthly |
Asset finance allows engineering businesses to acquire essential machinery and equipment by spreading the cost over its useful life, rather than paying upfront. This preserves working capital while securing the plant, vehicles, and specialist tools that engineering firms depend on. Lenders purchase the asset and lease it back, with ownership typically transferring at the end of the agreement. For UK engineering companies managing tight margins and seasonal project cycles, this approach keeps cash flow predictable whilst funding growth.
Comparing engineering finance providers goes beyond headline rates. The types of assets a lender will fund matters: some specialise in heavy plant, others in precision instruments. Check whether the lender understands engineering sector cycles, since seasonal revenue makes flexible repayment structures essential. Speed matters when bidding on contracts with tight deadlines. Also compare hire purchase against finance lease and operating lease options, as each affects tax and balance sheet treatment differently for engineering firms.
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.
Reward Funding
Published loan range£100,000 to £5,000,000
Rate typeinterest 0.99% to 3% monthly
Overview: Reward Funding structures asset finance facilities from £100,000 to £5 million, suiting engineering firms acquiring heavy machinery or production equipment. Decisions can arrive within 24 hours, and the lender works with businesses that want funding tied to the asset rather than unsecured debt. Monthly interest rates start at 0.99%, though the final rate depends on credit strength and asset type.
Best next step: Get a decision within 24 hours on asset finance.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Facilities from £100,000 to £5 million available
- Funding tied directly to the asset
- Fast decisions, often within 24 hours
Need to know
- Requires suitable asset security
- Monthly rates vary by credit profile
- May need a deposit contribution
Expert take
A specialist asset funder suited to mid-to-large engineering firms. The asset-backed structure means businesses investing in plant or machinery can borrow without pledging additional property security.
Source:https://rewardfunding.co.uk/
Liberty Leasing
Published loan range£10,000 to £2,000,000
Rate typeinterest 11% to 16% annually
Overview: Liberty Leasing charges annual interest from 11% to 16% on asset finance facilities ranging between £10,000 and £2 million. For engineering businesses, this means straightforward pricing on equipment funding without the complexity of monthly factor rates. Decisions often land within 24 hours. The lender suits firms that prefer annualised rates and want funding ring-fenced to a specific asset purchase.
Best next step: Compare annual-rate asset finance from £10,000 to £2 million.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Annual interest rates, not monthly
- Funding from £10,000 to £2 million
- Decisions often within 24 hours
Need to know
- Rates range 11% to 16% annually
- Asset eligibility checks apply
- Deposit may be required
Expert take
A transparent-rate asset funder whose annual pricing model helps engineering firms compare costs easily. The £10,000 minimum keeps the door open for smaller equipment purchases, while the £2 million ceiling covers larger capital investments.
Lombard
Published loan rangeUp to £5,000,000
Rate typeinterest 4% to 11.5% monthly
Overview: Lombard funds asset purchases up to £5 million with monthly interest rates from 4% to 11.5%. The repayment structure suits engineering firms that want to match finance costs to project or contract income cycles. Approval can come within 24 hours. Lombard is a long-established name in asset finance, which may appeal to engineering directors who value institutional backing behind their equipment funding.
Best next step: Fund equipment up to £5 million with monthly-rate terms.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Facilities available up to £5 million
- Monthly repayment structure
- Established institutional lender
Need to know
- Monthly rates 4% to 11.5%
- Asset type affects eligibility
- May need valuation on larger assets
Expert take
A household name in asset finance with the balance-sheet strength engineering firms often look for. The monthly rate model and £5 million ceiling cover everything from CNC machines to entire production-line upgrades.
Source:https://www.lombard.co.uk/
Time Finance
Published loan rangeUp to £5,000,000
Rate typeinterest 5.5% to 13.5% annually
Overview: Time Finance suits engineering firms that invoice other businesses and wait weeks or months for payment. Its invoice finance facility releases cash against unpaid B2B invoices, turning receivables into working capital without adding term debt. Asset finance is also available for equipment purchases. Combined facilities can reach £5 million, and annual interest rates run from 5.5% to 13.5%.
Best next step: Unlock cash from unpaid invoices alongside asset finance options.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Invoice finance for B2B engineering firms
- Combined facilities up to £5 million
- Annual rates from 5.5%
Need to know
- Suits businesses invoicing other firms
- Debtor quality affects eligibility
- Limits can be reviewed over time
Expert take
A dual-product lender who understands engineering firms often need both working capital and equipment funding. The invoice finance arm tackles cash-flow gaps on long payment terms, while the asset finance side covers machinery purchases.
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 asset finance decisions in as little as four hours, helping engineering firms that need to secure equipment quickly. Facilities start from £1,000, so even smaller tooling or ancillary machinery purchases are covered. Annual interest rates range from 5.5% to 13.5%. The speed of underwriting makes this worth considering when lead times on equipment orders are tight.
Best next step: Decisions in as little as four hours on equipment leasing.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Decisions in as little as 4 hours
- Funding available from £1,000
- Annual rate pricing model
Need to know
- Rates range 5.5% to 13.5% annually
- Asset type affects approval
- Deposit terms vary by deal
Expert take
A fast-moving equipment lessor whose four-hour decision window suits engineering workshops that cannot afford downtime waiting for finance approval. The low minimum starting point works for smaller ancillary kit.
Lloyds Bank
Published loan range£1,000 to £50,000
Rate typeinterest 10.65% to 11.2% annually
Overview: Lloyds Bank lends to engineering firms from £1,000 to £50,000 at annual rates between 10.65% and 11.2%. Many engineering business owners already bank with Lloyds, which can simplify the application process and speed up verification. Funding decisions typically take around 48 hours. The rate band is narrow and predictable, though bank underwriting tends to be stricter than alternative lenders.
Best next step: Fund equipment through your existing banking relationship with Lloyds.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Familiar high-street banking partner
- Predictable annual rate band
- Facilities from £1,000 to £50,000
Need to know
- Bank underwriting can be strict
- Typically 48-hour decision time
- May require trading history proof
Expert take
A high-street bank that suits engineering firms wanting asset finance alongside day-to-day banking. The narrow rate band and familiar processes appeal to conservative borrowers, and existing Lloyds customers often move through verification faster.
Barclays
Published loan range£1,000 to £25,000,000
Rate typeinterest 8.5% to 14.9% annually
Overview: Barclays writes asset finance from £1,000 to £25 million, giving engineering businesses a single lending relationship that scales from a lathe upgrade to a full factory fit-out. Annual rates run from 8.5% to 14.9%, and decisions can arrive within 24 hours. The wide facility range means firms can start small and return for larger equipment funding as they grow, without switching lenders.
Best next step: Asset finance from £1,000 to £25 million with Barclays.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Wide facility range: £1,000 to £25 million
- Decisions often within 24 hours
- One lender for small and large needs
Need to know
- Annual rates 8.5% to 14.9%
- Bank credit standards apply
- Larger deals need asset valuation
Expert take
A major clearing bank whose asset finance arm stretches from micro-ticket to multi-million-pound deals. Engineering firms that plan to scale their equipment base over time benefit from the continuity.
Rivers Leasing
Published loan range£5,000 to £100,000
Rate typeinterest 4% to 11.5% monthly
Overview: Rivers Leasing prices asset finance on a monthly rate basis, from 4% to 11.5%, with facilities between £5,000 and £100,000. This mid-ticket range suits engineering firms acquiring individual machines or small production runs of equipment. Decisions typically take around 48 hours. The monthly rate structure may appeal to businesses that prefer to align finance costs with shorter-term project cash flows.
Best next step: Mid-ticket asset finance from £5,000 to £100,000.
More info
Company stats
Loan range
Rates and debtor rules
Benefits
- Mid-range facilities for individual machines
- Monthly rate pricing model
- Suitable for production equipment
Need to know
- Monthly rates 4% to 11.5%
- Around 48-hour decision time
- Asset eligibility criteria apply
Expert take
A focused asset funder whose £5,000 to £100,000 sweet spot covers the equipment purchases most engineering SMEs make. The monthly pricing aligns well with contract-based revenue patterns.
Aldermore Asset finance
Published loan range£1,000 to £10,000,000
Rate typeinterest 5% to 15% annually
Overview: Aldermore Asset Finance covers facilities from £1,000 to £10 million at annual rates between 5% and 15%. The broad range means engineering firms can fund anything from handheld diagnostic kit to heavy CNC machinery through the same lender. Decisions typically take around 48 hours. Aldermore has deep experience in asset-backed lending, which helps when equipment valuations are central to the approval.
Best next step: Asset finance from £1,000 to £10 million with annual rates.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Broad facility range: £1,000 to £10 million
- Annual interest from 5%
- Experienced asset-backed lender
Need to know
- Rates up to 15% depending on risk
- Around 48-hour decision window
- Equipment valuation may be needed
Expert take
An asset finance lender with one of the widest facility bands in the market. Engineering firms valuing expertise in equipment-backed deals should find the underwriting approach well matched.
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: Close Brothers works with established engineering and manufacturing firms, arranging asset finance from £25,000 to £100 million. Monthly rates start at 3.5% and reach 10%, with decisions typically within 24 hours. The lender has a long track record in industrial sectors, so its underwriters tend to understand engineering asset values and lifespan better than generalist funders. Minimum turnover expectations apply.
Best next step: Industrial-sector asset finance from £25,000 to £100 million.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Deep industrial sector experience
- Facilities up to £100 million
- Decisions often within 24 hours
Need to know
- Minimum facility size £25,000
- Suits established engineering firms
- Monthly rates 3.5% to 10%
Expert take
An industrial finance heavyweight whose underwriting team genuinely understands engineering assets. Mid-market and larger manufacturers gain a lender that speaks their language on equipment valuations and useful life.
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What types of equipment can engineering finance providers cover
Engineering finance providers in the UK typically fund a broad range of capital equipment. This includes CNC machining centres, lathes, press brakes, injection moulding machines, 3D printers, welding systems, and automated production lines. Commercial vehicles such as flatbed trucks and specialist transport rigs also fall within scope. Many lenders fund both new and used machinery, though the age and condition of second-hand equipment can affect the terms offered.
Facility sizes vary widely across the market. Barclays and Aldermore Asset Finance both accept applications from as little as £1,000 for smaller tooling or software purchases. At the upper end, Close Brothers writes facilities up to £100,000,000 for major capital programmes. Reward Funding and Lombard each offer facilities of up to £5,000,000, covering mid-range plant upgrades or multiple-unit orders. Engineering firms planning mixed-asset purchases should confirm with their provider whether all items can sit under a single agreement.
Lease versus hire purchase for UK engineering businesses
Engineering firms choosing asset finance must decide between a lease and hire purchase. The right structure depends on how long the equipment will be used and whether ownership matters.
With a lease, the lender buys the asset and rents it to the business for a fixed term. Monthly payments tend to be lower than HP because the lender retains ownership and reclaims VAT on the purchase. At the end of the term, the equipment is returned, upgraded, or refinanced. This suits engineering workshops that refresh CNC or testing kit every few years and prefer off-balance-sheet treatment.
Hire purchase gives the engineering firm eventual ownership once all payments are made. The asset sits on the balance sheet from the start and capital allowances can be claimed. HP works well for long-life machinery such as press brakes or fabrication lines that a business intends to keep for a decade or more. Liberty Leasing and Time Finance both structure HP agreements, with terms typically running from one to five years depending on the asset.
How engineering finance costs compare across top providers
Asset finance rates for engineering businesses vary by lender structure and risk profile. Some providers quote monthly rates while others use annual percentages, so comparing on a like-for-like basis is essential.
| Lender | Rate type | Typical rate range |
|---|---|---|
| Reward Funding | Monthly interest | 0.99% to 3% per month |
| Lombard | Monthly interest | 4% to 11.5% per month |
| Liberty Leasing | Annual interest | 11% to 16% per year |
| Aldermore Asset Finance | Annual interest | 5% to 15% per year |
| Close Brothers | Bespoke | 3.5% to 10% per month |
Beyond the headline rate, engineering firms should factor in arrangement fees, documentation charges, and any balloon or residual value payments. The APR is not always published for asset finance, so requesting a total cost breakdown in writing is sensible before committing.
What engineering businesses need to qualify for asset finance
Eligibility criteria among UK engineering finance providers cover trading history, turnover, and director guarantees.
Minimum trading history varies. Aldermore Asset Finance considers applications from businesses trading for just six months, which helps newer engineering startups. Lombard and Close Brothers both require at least one year of filed accounts. Turnover thresholds also differ: Close Brothers asks for £500,000 minimum, Lombard requires £25,000, and Aldermore sets no minimum, making it accessible to micro-engineering firms.
Personal guarantees are standard across most top providers. Reward Funding, Liberty Leasing, Time Finance, Aldermore, and Close Brothers all require directors to personally guarantee facilities. Homeowner status is not a barrier; none of the providers with confirmed criteria require residential property as security. A strong credit history and clean management accounts help, particularly for larger facilities. Engineering firms with uneven or project-based revenue may need to present cash flow forecasts alongside their application.
