October 30, 2025
Lender Comparisons

Paragon Bank Vs Close Brothers: Compare Rates

Compare Paragon Bank and Close Brothers Asset Finance for better rates and flexible options. Find out who suits your needs best.
James Laden
Co-founder and CEO

Paragon Bank vs Close Brothers Asset Finance: Which Lender Is Right for Your UK Business?

This comparison is for UK SMEs weighing up two established providers of asset finance. We compare products, costs, speed, and service. The goal is to help you pick a structure and lender that fits your cash flow and risk. We link to official pages where possible. Paragon Bank and Close Brothers Asset Finance both fund equipment, vehicles, and machinery, but their approach and pricing can feel different in practice.

TL;DR
  • Both lenders offer hire purchase, finance lease and operating lease. Close Brothers also leans into refinance/capital release at scale.
  • Paragon has pushed hard on speed with auto-decisioning on smaller tickets and same‑day pay‑out capability for straightforward cases.
  • Close Brothers emphasises sector specialists and aims to give decisions within days, sometimes hours, supported by a nationwide sales team.
  • Typical terms run three months to six years. Headline rates are bespoke; Close Brothers’ group reports c.12% average effective yield on leases; we model examples to show cash‑flow impact.
  • Pick Paragon for digital speed and brokers; pick Close Brothers if you want heavy sector expertise and refinancing breadth.

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Paragon vs Close Brothers: price, limits, speed, and UX

This dashboard compares rates, amounts, terms, speed, fees, arrangement %, digital features, and ratings. Each tab holds one chart. Bars show ranges and typical points; fastest bars show best‑case timing. Read axes and legends, then weigh cash flow, risk, and time‑to‑funds to pick a lender and term today.

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Bars show the min to max rate for each lender. A separate bar marks a typical quote. Pricing moves with credit quality, sector risk, security, and term. A 1% rate gap on £100,000 over 5 years changes the monthly by about £0 and total interest by about £0. Prioritise a lower typical if your file is strong and you want fast certainty. A wider range matters if the case is unusual or the asset is niche, as outliers may still clear.

Each bar shows minimum to maximum facility. Paragon runs from £1,000 to £2,000,000 under scheme rules. Close Brothers shows £10,000 to £1,000,000 for typical brokered deals. Use lower bands for fit‑out, stock, and tooling. Use upper bands for capex and multi‑asset bundles. Larger structured lines exist and matter for plant buys, but affordability and security set the real ceiling.

Bars show shortest to longest terms in years. Longer terms cut the monthly, but raise total interest paid. At £50,000, 3 years versus 6 years moves the monthly to about £0 and £0. That adds roughly £0 of interest. Longer terms suit seasonal cash flow or growth plans. Keep headroom for maintenance and VAT.

Bars use midpoints in days for application to decision and decision to funds. A separate bar shows the fastest path. Deals slow when documents are missing, bank statements are unclear, or security needs valuations. If payroll is due in 5 days, the faster lender is safer. Fast paths assume clean files and quick signatures.

Bars capture application and late payment fees. They do not include legal or valuation costs. £150 on a £20,000 loan adds 0.75% to day‑one cost. Compare fees alongside rate and term. A low fee with a high rate may still be worse over 5 to 6 years. Check early settlement rules.

The bar shows the arrangement fee as a percent of the amount financed. Some products deduct it upfront. Others add it to the balance. 1.5% on £250,000 equals £3,750. A higher fee with a lower rate may still be cheaper over long terms. Run the sums before you sign.

This bar chart scores features. Booleans count as 1, integrations are counts, and UX uses a 1 to 5 scale. Open banking speeds underwriting. APIs help multi‑account firms. Mobile and e‑sign support on‑the‑go approvals. Busy owners and multi‑entity groups benefit most. Faster reconciliations help finance teams.

Axes show stars on the left and NPS on the right. Higher review counts give steadier signals. Branch experiences can vary, and service differs by case. Read recent reviews and match themes to your needs, such as speed, document demands, and portal ease. Update this tab with live scores before a board decision.

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Products and Terms at a Glance

Paragon Bank overview, loan sizes, fees, repayment style, terms, eligibility

Paragon provides business asset finance across sectors such as construction, transport, agriculture, aviation, manufacturing and technology. Products include hire purchase (fixed instalments, ownership at the end on payment of the option to purchase fee), finance lease (rentals over a primary term, with end‑of‑term options) and operating lease (usage-focused with a residual value set by the lender). Paragon also offers refinance and commercial loans alongside receivables‑backed facilities for certain contracts. (Sources: Paragon asset finance pages and finance options.)

Terms: asset finance and term loans under the Government’s Growth Guarantee Scheme (GGS) are typically three months to six years. Minimum facility sizes under GGS start from £1,000 for asset finance, with maximums up to £2 million per business group, subject to eligibility and standard checks. Pricing is bespoke. Personal guarantees may be taken; principal private residences are excluded for GGS. (Source: Paragon GGS page.)

Repayment style: hire purchase offers fixed monthly or quarterly repayments, with seasonal profiles available in some sectors. Finance leases and operating leases are rental‑based. Fees usually include documentation and an option to purchase fee on HP; early settlement costs can apply. (Source: Paragon finance options.)

Eligibility: UK‑based trading businesses, with viability assessed by underwriters. Paragon distributes heavily via intermediaries and has invested in digital processes for faster decisions. Same‑day pay‑out is advertised for straightforward brokered cases, supported by auto‑decisioning for smaller tickets. (Sources: Paragon intermediary pages and press updates.)

Pros of Paragon Bank

  • Strong broker infrastructure and a digital origination portal for quick quotes and submissions.
  • Auto‑decisioning for smaller deals, helping speed on sub‑£150k tickets.
  • Same‑day pay‑out capability on qualifying cases.
  • Sector breadth, including green asset finance focus.
  • Registered to the Lending Standards Board Asset Finance Standards, adding consumer‑style protections for business customers.

Cons of Paragon Bank

  • Pricing is entirely bespoke; public rate cards are limited, so you may need competing quotes to benchmark.
  • Broker‑first distribution can add steps if you prefer direct lender contact.
  • Facility size guidance outside schemes is less explicit on public pages.

Close Brothers Asset Finance overview, loan sizes, fees, repayment style, terms, eligibility

Close Brothers offers asset finance to UK SMEs through hire purchase, finance lease, operating lease and refinance/capital release. It operates through specialist teams across industries from transport and logistics to renewables, engineering, materials handling and marine. (Sources: Close Brothers asset finance pages.)

Terms: under GGS, asset finance terms run three months to six years. Decisions are credit‑assessed case by case. The business frequently references quick decisions within days, sometimes hours. Typical size guidance for business customers shows minimums around £10,000 and maximums around £1,000,000 for standard brokered transactions, though larger structured deals exist. (Sources: Close Brothers site and broker documents.)

Repayment style: HP with fixed instalments and an option to purchase fee at the end; finance lease with primary and secondary rental periods; operating lease where you return the asset at term end under agreed conditions. Fees include documentation and, for HP, an option to purchase fee. (Sources: Close Brothers product explainer pages.)

Eligibility: UK trading businesses, with affordability and asset suitability assessed by sector‑specialist teams. Close Brothers uses a nationwide direct sales force and intermediary partners. It is an approved lender under GGS and publishes regular investor updates on the asset finance loan book. (Sources: Close Brothers GGS and investor pages.)

Pros of Close Brothers Asset Finance

  • Deep sector coverage with relationship managers who understand asset lifecycles and residuals.
  • Clear emphasis on refinance/capital release for unlocking cash from owned assets.
  • Broad product mix including contract hire and specialist verticals.
  • Public decision‑speed guidance: decisions within days, sometimes hours.
  • Transparent size guidance for many brokered transactions.

Cons of Close Brothers Asset Finance

  • Pricing is bespoke and may reflect sector risk and asset depreciation assumptions.
  • Documentation and fee schedules vary by division and asset type, so comparisons can take time.
  • Group‑wide priorities and transformation programmes can change processes; expect periodic updates to documentation and platforms.

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Costs and Repayments in Practice

Both lenders price to risk, asset type and term. They use fixed‑rate term‑style repayments for hire purchase and rentals for leases. Government‑guaranteed schemes such as GGS can broaden access and may influence pricing but do not cap it; lenders still run standard credit and fraud checks. (See each lender’s GGS pages.)

Close Brothers discloses group‑level yields on lease and HP receivables in its results. Recent reports show an average effective interest rate on finance leases around 12%–13%. That can help you sanity‑check quotes. Paragon does not publish a simple headline rate for asset finance; like peers, it prices per deal. Use multiple quotes for benchmarking. Always compare total cost of credit, fees, and any early settlement terms.

Feature Paragon Bank Close Brothers Asset Finance
Products Hire purchase, finance lease, operating lease; refinance and commercial loans in select markets. Hire purchase, finance lease, operating lease, refinance/capital release; contract hire in some sectors.
Typical term 3–72 months on GGS; sector‑specific profiles available. 3–72 months on GGS; sector‑specific profiles available.
Indicative deal size guidance GGS minimum £1,000 for asset finance; larger tickets available case by case. Typical brokered range £10,000 to £1,000,000; larger structured deals possible.
Rate structure Fixed repayments on HP; rentals for leases. Pricing bespoke. Fixed repayments on HP; rentals for leases. Pricing bespoke. Group disclosures show c.12% average effective yield on leases.
Common fees Documentation fee; option to purchase fee on HP; early settlement charges possible. Documentation fee; option to purchase fee on HP; early settlement charges possible.
Decision speed Auto‑decisioning available on smaller tickets, plus same‑day pay‑out capability for straightforward brokered cases. Decisions within days, sometimes hours, via sector specialists and direct sales force.
Distribution Broker‑led with digital portal and auto‑decisioning for fast turnarounds. Direct regional teams plus broker partners; strong sector coverage.

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Notes: Rates are indicative only and vary by asset, term, sector, deposit and risk. Use this table for orientation, not as a quote.

Worked example: Paragon Bank (hire purchase)

Scenario: a manufacturer purchases a CNC machine for £60,000 ex‑VAT. Deposit 10% (£6,000). Finance £54,000 over 60 months at an assumed 11.9% APR with fixed monthly repayments. Result: monthly about £1,198 and total repayable about £71,908, excluding any documentation and option to purchase fees. This spreads the cost while keeping ownership at the end. Seasonal payment profiles may be available in sectors with uneven cash flow. (Illustrative example; actual pricing will vary.)

Worked example: Close Brothers (refinance/capital release)

Scenario: a haulier unlocks £50,000 from unencumbered trailers via refinance over 36 months at an assumed 12.4% APR. Result: monthly about £1,670 and total repayable about £60,130, excluding fees. Cash is released up front to fund growth, while repayments are matched to earnings from the fleet. (Illustrative example; actual pricing will vary.)

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Speed and Service

Paragon has invested in technology and process. Its broker portal supports quick quotes and applications, with auto‑decisioning live for smaller deals and the ability to pay out the same day on straightforward cases. The bank reports a 60% reduction in average processing time year on year, which aligns with anecdotal case studies of approvals within hours and funds within one to two days for simple proposals. This suits time‑sensitive purchases. (Sources: Paragon intermediary pages, press releases and case study.)

Close Brothers highlights a relationship model with sector expertise. It aims to give decisions within days, sometimes hours, and publishes case studies where decisions took around three days. The group has been upgrading platforms to standardise processes and improve customer experience, while maintaining a prudent, secured‑lending approach. (Sources: Close Brothers site, case studies and strategy updates.)

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Who Each Lender Suits

Typical scenario for Paragon Bank

You prefer a broker‑led journey with digital onboarding and you need quick certainty on a standard asset. You want the option for seasonal payments. You may also want to consider complementary facilities such as invoice finance or a short fixed‑term term loan alongside the asset purchase.

Typical scenario for Close Brothers Asset Finance

You value face‑to‑face support from sector specialists. You may want to refinance owned equipment to release working capital, or bundle multiple assets into one facility. You may also compare alternatives such as working capital loans for non‑asset needs.

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How to Apply

Application steps and documentation required for each lender

  • Define the requirement. Asset details (make, model, supplier quote), desired structure (HP, finance lease, operating lease), and term. Consider whether a VAT loan or deposit is needed.
  • Gather financials. Latest filed accounts, recent management information, bank statements, debtor/creditor summaries, and background on contracts. For refinance, provide proof of ownership and asset valuations.
  • Directors and security. ID and address documents, and details for any personal guarantees. Under GGS, principal private residences cannot be taken as security. (Check each lender’s GGS guidance.)
  • Submit. With Paragon, many SMEs apply through an intermediary using the digital portal for quicker decisions. Close Brothers accepts applications via its regional managers or broker partners.
  • Decision and pay‑out. Paragon can auto‑decision smaller tickets and pay out the same day where documentation is complete. Close Brothers targets decisions within days, sometimes hours, and can move quickly once valuations and documents are done.

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Final Verdict: Which Lender Fits Your Business Best

Choose Paragon Bank if…

  • You want a fast, digital journey with auto‑decisioning on smaller deals.
  • You are comfortable working with a broker who can package the case for quick turnaround.
  • Your asset sits in a sector Paragon actively supports, including transport, agriculture, construction or green technology.
  • You value options like seasonal repayments and same‑day pay‑out for simple cases.

Choose Close Brothers Asset Finance if…

  • You want hands‑on support from sector specialists and a relationship‑led process.
  • You need refinance/capital release against owned equipment at scale.
  • You prefer clear deal‑size guidance and a national coverage model with direct managers.
  • You want a lender with a long track record and detailed public reporting on its asset finance book.

Both lenders are credible choices for UK SMEs. The better fit comes down to speed vs relationship, and whether you lean towards broker‑led digital flow (Paragon) or specialist, on‑the‑ground teams (Close Brothers). If you want an independent view across lenders and products, speak to Funding Agent or send the basics via our enquiry form and we will match you to lenders and structures.

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