Lombard Asset Finance vs Shawbrook Asset Finance Comparison

Lombard Asset Finance, part of NatWest Group, focuses on helping UK businesses fund vehicles, machinery and equipment through specialist asset finance structures such as hire purchase and leasing, as outlined on its main asset finance page and detailed product pages like hire purchase and lease. Shawbrook operates as a specialist UK savings and lending bank, offering business lending solutions that have historically included asset finance and related facilities for SMEs according to its lender profile on Funding Xchange and its own asset based lending page. Both lenders serve established UK businesses, but they differ in product breadth, ownership structures and current strategic focus areas, which can affect how suitable they are for specific funding needs as of 2025 to 2026. This comparison looks at products, structures, costs in practice, and typical use cases, drawing on each provider’s official information as well as independent commentary such as Finder’s Lombard summary and Parliamentary evidence on Shawbrook’s SME lending. It is designed to support, not replace, direct due diligence on each lender’s latest terms, eligibility rules and service levels.

1. Products and terms at a glance

Lombard Asset Finance

Lombard North Central plc, trading as Lombard, is described by NatWest Group as its specialist asset finance arm focusing on funding business assets such as vehicles, machinery and technology for UK businesses, with a range of asset finance structures highlighted on its main asset finance page. Lombard’s core products include hire purchase, where a business pays monthly instalments to acquire an asset with an option to own it at the end, and lease facilities that provide use of an asset in exchange for fixed rentals without automatic ownership, as explained on its dedicated hire purchase and lease product pages. Lombard’s support materials indicate that finance can be used across sectors and asset classes, including vehicles, equipment and technology, based on descriptions of “vehicles, equipment or cutting-edge technology” on its business finance overview. Agreement FAQs clarify that Lombard offers different contract types such as hire purchase and conditional sale, and that customers can discuss which structure they want, according to its agreement FAQ page. Independent reviews summarise Lombard’s proposition as offering several distinct asset finance options with term lengths and structures tailored to business needs, without publishing headline rates, as set out in Finder’s Lombard overview. Finder also notes that applications are handled by a finance specialist who talks through options rather than through a pure self-serve journey, which aligns with Lombard’s own emphasis on speaking to specialist advisers on its support page.

Shawbrook Asset-related lending

Shawbrook Bank Limited is a specialist UK savings and lending bank that has historically provided asset finance and related facilities to UK SMEs, with written evidence to Parliament describing Shawbrook’s asset finance division as offering regional asset finance lending through leasing and hire purchase to SMEs and healthcare providers, as outlined in a submission on SME lending to a UK Parliament committee on SMEs and finance (SME0123 evidence). A Funding Xchange lender profile summarises Shawbrook’s offering as including asset finance facilities such as hire purchase, leasing and sale and leaseback to UK-based businesses, as well as other lending products, confirming that asset finance forms part of its historical toolkit (Funding Xchange profile). Shawbrook’s more recent focus is asset based lending and unsecured business lending rather than stand-alone small-ticket asset finance. Its current website positions asset based lending as a working capital and strategic funding solution for established mid-market UK businesses, where facilities are secured against balance sheet assets such as receivables, inventory and sometimes plant and machinery, as described on its asset based lending page. Alongside this, it promotes unsecured and professions finance loans as part of its business lending range, with loans described for professional firms from £25,000 to £2 million on its professions finance page. Industry news indicates that Shawbrook paused new applications for its traditional asset finance facilities from January 2025 in order to focus on product expansion, according to a report by Leasing Life. This suggests that while existing Shawbrook asset finance customers may still be serviced, new-asset finance origination through its previous dedicated arm varies and should be checked directly with the bank’s relationship or broker channels.

High-level structural comparison

At a structural level, Lombard offers classic UK asset finance products like hire purchase and leasing that are explicitly tied to specific assets, whereas Shawbrook positions asset-based facilities and unsecured business loans as part of a broader SME funding proposition that can include asset-backed working capital and capex loans based on its asset based lending and enhanced unsecured business loan content. For businesses seeking a single provider focused predominantly on funding assets, Lombard will normally appear more specialised, whereas Shawbrook is more likely to be viewed as a relationship bank offering a mix of secured and unsecured structures, subject to its evolving appetite for new asset finance cases. Key terms such as minimum and maximum deal sizes, accepted asset types and specific security structures vary for both lenders and are not comprehensively published, so businesses typically need an indicative quote or broker support to confirm eligibility for their circumstances, as implied by the absence of detailed criteria on Lombard’s product pages and Shawbrook’s public asset-based lending information (Lombard overview, Shawbrook ABL).

2. Costs and repayments in practice

Neither Lombard nor Shawbrook publishes comprehensive tariffs for all asset-related facilities, so exact pricing needs to be treated as varies and confirmed by quotation. Lombard’s asset finance pages state that hire purchase involves paying fixed monthly instalments over an agreed term to spread the cost of an asset, with the possibility of choosing a final option to purchase, but they do not disclose representative APR examples, instead emphasising that payments and terms are tailored to the asset and business profile based on its hire purchase explanation. The lease product page explains that lease rentals are pre-agreed regular payments for the right to use an asset, again without listing standard rate grids, and that different lease types exist which can affect tax and accounting treatment, according to its lease product description. Shawbrook’s asset based lending materials focus on how funding levels are calculated as a percentage of eligible assets, such as receivables or inventory, and mention that pricing is bespoke with terms negotiated to fit a business’s situation, but do not provide headline rates, as per its ABL page. Its unsecured business lending and professions finance content highlights that loan sizes and terms can be larger or extended in some enhanced offers, but without sharing standardised interest rate ranges in the public domain, according to its enhanced unsecured business loan insight and professions finance details.

Illustrative comparison table

The table below uses indicative, non-binding assumptions to compare how costs and structures might differ. All pricing is labelled as varies, and actual terms will depend on current lender policies and individual credit assessments.

Worked example 1, asset acquisition via Lombard-style hire purchase

To illustrate how costs might behave in practice, consider a business buying a £100,000 piece of equipment using a hire purchase facility structured similarly to Lombard’s product, with the following purely illustrative assumptions, all of which vary in reality:

• Asset cost £100,000 including VAT, with VAT funded separately by the business
• Deposit 10 percent (£10,000) paid upfront
• Amount financed £90,000
• Term 5 years with fixed monthly repayments
• Interest cost assumed illustratively so that the total amount payable over the term is £110,000

Under these assumptions, the business might repay around £110,000 over 60 months, which would imply an average monthly payment of roughly £1,833, with ownership passing at the end via an option-to-purchase, consistent with the structure described on Lombard’s hire purchase page. This example is not a quotation and does not reflect Lombard’s actual pricing, which varies by deal.

Worked example 2, working capital via Shawbrook-style asset based lending

Now consider a mid-market business that wants to unlock working capital against its receivables using an ABL structure of the type described by Shawbrook, where funding is advanced against a proportion of eligible debtor balances per its asset based lending explanation. Assume the following, again purely illustrative and varies in practice:

• Eligible trade receivables of £5 million
• Advance rate 80 percent against these receivables
• Initial availability £4 million under a revolving facility
• Margin and fees chosen such that the annualised cost of funds is equivalent to 8 percent for illustration purposes only

If the business draws the full £4 million for an average of six months of the year, the approximate annual interest cost at the assumed 8 percent would be about £160,000. In practice, receivables balances and utilisation fluctuate daily, so interest and fees would adjust accordingly in line with the mechanics outlined on Shawbrook’s ABL page. This example is only to show how a facility based on receivables advances might compare with a single fixed-term asset loan in cashflow terms.

Repayment flexibility and early settlement

Lombard’s agreement FAQs describe how different agreement types handle ownership, end-of-term options and potential settlement, but they do not publish a universal early repayment policy or fee schedule, noting instead that arrangements depend on the type of agreement and its terms, as explained in its agreement FAQs. Shawbrook’s public ABL content does not explicitly set out early repayment mechanics either, though ABL facilities typically involve negotiated covenants, notice periods and potential break costs that vary and are documented in facility agreements, inferred from the bespoke nature described on its ABL page. Given this, businesses should assume that early settlement, restructuring or overpayments can incur additional costs or require negotiation with both Lombard and Shawbrook, and should request specific settlement illustrations before signing or varying agreements.

3. Speed and service

Lombard does not state fixed approval timescales for asset finance on its public site, and Finder’s summary indicates that an expert calls the applicant to discuss options rather than promising automated instant decisions, which implies that timelines vary by case complexity and asset type as described in Finder’s Lombard review. Lombard’s own support page advises that its expert team is available Monday to Friday, 9am to 5pm, and that businesses can start a live chat or contact by phone, without promising specific turnaround times, based on its contact us page. Shawbrook’s business lending pages also do not commit to fixed decision times for asset-based or unsecured business lending, instead highlighting that facilities are tailored and often arranged via brokers or relationship teams, which suggests that approval speed varies depending on the structure and due diligence required, as inferred from its help with business lending page. Third-party overviews, such as Funding Xchange’s profile, emphasise a relationship-led model but also refrain from quoting standard approval times, again indicating that timing varies and should be treated as case specific (Funding Xchange on Shawbrook). On service and complaints handling, Lombard provides a dedicated support hub that includes guidance on how to raise issues and a specific complaints process, inviting customers to contact it directly and signposting the Financial Ombudsman Service, according to its complaints page. Shawbrook maintains a similar complaints framework for all its customers, with a dedicated information page that explains how to complain by email, post or phone and sets out how it will respond, as described on its complaints page. Customer review platforms show a mixed range of experiences for both lenders, but these aggregate ratings can change frequently and may not distinguish between asset finance and other products, so they should be treated cautiously. Example sources include Trustpilot reviews for Lombard and Trustpilot reviews for Shawbrook, which group together various product lines and time periods.

4. Who each lender suits

Based on current public positioning and independent commentary, Lombard and Shawbrook are likely to appeal to different types of businesses and funding requirements. Lombard appears particularly suited to SMEs and larger businesses that:

• Need to fund tangible business assets like vehicles, plant, machinery or technology through classic hire purchase or leasing arrangements, as identified on its asset finance overview
• Prefer fixed monthly repayments and a clear path to ownership at the end of the term for hire purchase, consistent with its hire purchase structure
• Value dealing with a provider whose core specialism is asset finance within a major UK banking group, as indicated by NatWest describing Lombard as its asset finance arm on NatWest’s asset finance page

Shawbrook’s asset-related and unsecured lending solutions may be better aligned with businesses that:

• Are mid-market or more established SMEs seeking a wider banking relationship that can cover working capital, growth finance and potential acquisitions, rather than only single-asset funding, as framed on its ABL page
• Have significant receivables, inventory or other balance sheet assets that can be leveraged for multi-asset funding facilities, also reflected in the ABL description on its site
• May benefit from unsecured or professions-focused term loans to support working capital or practice growth, based on the unsecured business lending content at professions finance

Importantly, industry reporting that Shawbrook paused new applications for its traditional asset finance products from early 2025 suggests that businesses seeking small-ticket, asset-specific hire purchase or lease may now find fewer options at Shawbrook and should verify the current position with the bank or a broker, as indicated by Leasing Life’s 2025 article.

5. How to apply

Lombard is oriented towards applications via specialist support rather than fully online self-service. Its contact page directs prospective customers to either request a callback, start live chat or call directly to discuss asset finance needs with an expert team, available weekdays 9am to 5pm, as set out on its contact information page. Once engaged, Lombard typically explores the type of asset, supplier, business profile and proposed term before structuring a hire purchase or lease agreement, which aligns with the explanation that an expert will “talk through your options” referenced in Finder’s Lombard overview. Shawbrook, by contrast, supports multiple application routes including direct business engagement and broker channels. Its business lending help page lists contact options for business lending products and signposts intermediaries who introduce asset-based and unsecured facilities, indicating that applications are generally channelled through specialists familiar with the relevant product type, as shown on its help with business lending page. Third-party platforms such as Funding Xchange also route SME enquiries to Shawbrook for facilities within its appetite, describing how applications involve submission of key financial information followed by lender assessment and offer, according to Funding Xchange’s Shawbrook profile. For both lenders, businesses should expect to provide financial accounts, management information and details of assets or collateral where relevant, and possibly personal guarantees depending on risk appetite, as is common in UK asset finance and asset-based lending markets. Exact documentation requirements vary and are not fully detailed on public pages, so applicants usually receive a tailored checklist during the initial discussion.

6. Final verdict

From a Funding Agent perspective, Lombard looks most appropriate where a business has a clear, asset-specific requirement and wants a lender whose core business is providing structured finance for vehicles, machinery or equipment, backed by the wider NatWest Group. Shawbrook, by contrast, is better viewed today as a broader specialist bank able to provide secured and unsecured lending solutions, including asset-based working capital facilities for mid-market businesses with substantial balance sheet assets. In deciding between them, businesses should pay attention to whether they need a single asset funding line or a wider capital structure solution, how much security they are willing to provide, and whether they prefer a bank that focuses primarily on asset finance or one that can potentially support a wider lending relationship, subject to credit appetite. Choose Lombard Asset Finance if:

• You want straightforward hire purchase or lease finance for identifiable business assets like vehicles, equipment or technology, consistent with the structures described on Lombard’s hire purchase page and lease page
• You value dealing with a provider that NatWest positions as its dedicated asset finance arm focusing on asset-based lending for UK businesses, as set out on NatWest’s asset finance overview
• You are comfortable with a relationship-led process where a specialist discusses your needs rather than an entirely digital application journey, as implied by Lombard’s contact arrangements and summarised in Finder’s review
• Your priority is aligning finance repayments with the working life of a specific asset, using fixed instalments and an end-of-term ownership option

Choose Shawbrook Asset Finance and related lending if:

• You are an established SME or mid-market business seeking a broader banking relationship that can include asset-based working capital, unsecured loans and other facilities, as indicated by Shawbrook’s ABL and unsecured lending pages
• You have significant receivables, inventory or other assets that you want to leverage across a combined facility rather than arranging separate funding for individual pieces of equipment
• You are comfortable with a more complex facility structure and covenant package that may suit larger or faster-growing firms needing flexible working capital as well as term debt
• You accept that stand-alone small-ticket asset finance availability varies and should be confirmed given Shawbrook’s 2025 pause in new traditional asset finance applications reported by Leasing Life

Ultimately, many UK SMEs will benefit from reviewing both pure asset finance and broader banking options in parallel, potentially using a broker or advisory service to benchmark bespoke quotations from Lombard, Shawbrook and wider market providers against their specific asset requirements, sector dynamics and risk tolerance.

7. Sources

• Lombard Asset Finance, main asset finance page
• Lombard Asset Finance, hire purchase product page
• Lombard Asset Finance, lease product page
• Lombard Asset Finance, agreement FAQs
• Lombard Asset Finance, support overview
• Lombard Asset Finance, contact us page
• Lombard Asset Finance, complaints process
• Finder UK, Lombard Asset Finance loans calculator and review
• NatWest, business asset finance overview featuring Lombard
• Trustpilot, Lombard customer reviews
• UK Parliament, SME0123 evidence on SME lending referencing Shawbrook Asset Finance
• Funding Xchange, Shawbrook Bank lender profile
• Shawbrook Bank, asset based lending product page
• Shawbrook Bank, professions finance unsecured business lending page
• Shawbrook Bank, enhanced unsecured business loan insight
• Shawbrook Bank, help with business lending
• Shawbrook Bank, complaints information
• Leasing Life, Shawbrook pauses asset finance applications
• Trustpilot, Shawbrook customer reviews
• Funding Agent, asset finance overview