How to Get IT Equipment Using Asset Finance (UK Guide)

Need laptops, servers, or networking kit, but do not want a big upfront bill? Asset finance can help. It lets your business get the IT equipment now, then pay over time. You usually choose between leasing (pay to use) or hire purchase (pay to own). This is a common way to upgrade business IT without upfront cost, while keeping cash in the bank.

In this guide, you will learn what you can finance, how the process works, what it costs, and what lenders look for. If you want a simple explainer first, read what asset finance is, then come back to this IT-specific guide. You can also start with Funding Agent’s overview of asset finance for businesses.

What “asset finance for IT equipment” means

Asset finance is a type of funding that is linked to a specific asset, in this case IT equipment. A lender funds the purchase, then you repay in fixed monthly payments. The equipment often helps secure the deal, because it has resale value.

There are two main routes:

• Hire purchase, you pay monthly and usually own the equipment at the end.
• Leasing, you pay to use the equipment, which can make upgrades easier.

If you want a deeper comparison of the two, this guide explains the difference between leasing and hire purchase.

What IT equipment can you finance?

Most business IT equipment can be financed if it is for business use and comes from a supplier with a clear quote. Common examples include:

• Laptops and desktops for teams, remote workers, or new hires.
• Servers and storage, including on-premise setups.
• Networking equipment like switches, routers, cabling, and Wi-Fi access points.
• Cybersecurity hardware, for example firewalls and secure gateways.
• EPOS systems and office hardware such as printers and scanners.
• Developer workstations for design, video, and data work.

Software can sometimes be included, but it depends on the lender and the deal. It is more common when software is bundled with hardware or part of a wider IT installation. For a bank-style overview of what is often eligible, see this example page: IT equipment can be financed.

How asset finance for IT equipment works, step by step

The process is simple once you know the steps. In many cases, you can get a decision fast if your paperwork is ready and the quote is clear.

1. Choose your equipment. List what you need, and why you need it.
2. Get a supplier quote. Ask for a proforma invoice or formal quote.
3. Apply for finance. You share business details and the quote with the lender or broker.
4. Lender checks the deal. They look at your trading, bank activity, and credit profile.
5. Sign the agreement. You accept the terms, and pay any deposit if needed.
6. Lender pays the supplier. The supplier gets paid, then delivers the equipment.
7. You repay monthly. Payments are usually fixed for the agreed term.
8. End of term choice. You own it, return it, or upgrade, depending on the product.

If you want an extra decision aid before you choose a product, use this leasing and hire purchase checklist.

Lease vs hire purchase for IT equipment

The right choice depends on how fast your technology changes, and how long you plan to keep it. Leasing can suit fast upgrade cycles. Hire purchase can suit kit you will keep for years.

Example costs (simple illustrations)

Costs depend on the lender, your trading history, credit profile, deposit, and term length. These examples are just to show how the moving parts work. A shorter term usually means higher monthly payments, but you finish sooner. A longer term can reduce monthly payments, but you may be paying after the tech is outdated.

• Example 1: £10,000 laptop refresh. A business spreads the cost over 24 to 36 months, with a deposit in some cases. This can help when hiring quickly and kitting out remote staff.
• Example 2: £25,000 server and networking upgrade. A business finances core infrastructure, then keeps working capital for setup and migration.
• Example 3: £5,000 cybersecurity hardware. A smaller deal that can still protect cashflow, while meeting security needs.

Who qualifies for IT equipment finance in the UK?

Lenders want to know two things, can you afford the repayments, and is the equipment suitable security. Many lenders prefer stronger trading history, but newer businesses can still be approved. What matters most is the overall risk picture.

• Trading history: longer trading can help, but it is not the only factor.
• Bank activity: lenders look for stable income and sensible spending.
• Credit profile: clean payment history helps, but options can exist for weaker credit.
• Clear supplier quote: itemised costs, model numbers, and delivery details.
• Deposit: some deals ask for one, often a percentage of the equipment cost.
• Personal guarantee: sometimes used, especially for smaller or newer firms.

If you want to understand how brokers add value, read how to pick the right asset finance broker. If you are comparing other funding routes too, this guide can help: how to qualify for a business loan in the UK.

Why businesses use asset finance for IT equipment

The main reason is cashflow. IT projects often come with hidden costs, setup, migration, training, and downtime planning. Spreading the hardware cost can make the project easier to run.

• Protect working capital for wages, stock, and growth spend.
• Upgrade sooner instead of waiting for budget to build up.
• Reduce the risk of buying tech that becomes outdated fast.
• Match cost to value, you pay while the kit is doing the work.

Here is a deeper look at the cashflow angle: how asset finance can boost cash flow for your business.

When leasing IT equipment is a mistake (and when buying is better)

Leasing is not always the right move. It can be a poor fit when the equipment will last a long time, and you will not need regular upgrades. It can also be risky if you might need to exit early.

• Leasing may be a mistake if you expect to keep the kit for five years or more.
• Buying outright may be better if you have strong cash reserves and get a big supplier discount.
• Hire purchase may be better if ownership matters and you want a clear end point.
• Avoid long terms that outlast the useful life of the equipment.

Common mistakes SMEs make when financing IT equipment

• Choosing the wrong spec. Consumer laptops can struggle in heavy business use.
• Forgetting the “full project” cost. Include setup, migration, and support in your plan.
• Picking a term that is too long. Tech changes fast, do not pay for outdated kit.
• Not checking warranty and service. A cheap quote can cost more later.
• Applying without a clear quote. Missing details can slow approvals.

How Funding Agent helps you compare options

Funding Agent helps businesses explore funding routes, including asset finance for equipment. You can compare options, understand the steps, and move faster with the right paperwork. This matters with IT, because delays can block onboarding, security fixes, and growth plans.

• View funding routes in one place: Funding Agent financing options.
• Use tools to sense-check figures: Asset Finance Calculator.
• Ready to start an application: apply through Funding Agent.

Want to explore next steps? Start here: asset finance, or browse all funding options.

‍