Top Capex Term Loan Lenders in the UK for 2026 | Compare Providers
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Top 10 Capex Term Loan Lenders in the UK Compared
| Rank | Lender | Best for | Published loan range | Loan rate |
|---|---|---|---|---|
| 1 | One Stop Business Finance | Large capex projects up to £3m with competitive interest rates | £100,000 to £3,000,000 | interest 1.6% to 3% |
| 2 | Cashera | Quick mid-range capex for equipment and machinery purchases | £10,000 to £100,000 | factor 1.2% to 1.49% |
| 3 | Sigma-lending | Established businesses funding mid-scale asset investments | £50,000 to £150,000 | factor 1.25% to 1.5% |
| 4 | Finance for enterprise | Broad capex needs from £1k upgrades to £2m projects | £1,000 to £2,000,000 | interest 6.5% to 13.5% |
| 5 | Shawbrook | More established firms funding long-term capex plans | £25,000 to £350,000 | interest 8% to 18% |
| 6 | SWIG Finance | Startups and small firms needing affordable capex funding | £500 to £250,000 | interest 6% to 6.18% |
| 7 | NatWest Bank | Bank-backed capex for businesses with strong turnover | £500 to £10,000,000 | interest 4.5% to 10.5% |
| 8 | Tide Bank | Flexible capex from £500 to large infrastructure projects | £500 to £20,000,000 | interest 5% to 11.5% |
| 9 | Accredo | Included for comparison; asset and equipment finance specialist | £25,000 to £1,500,000 | interest 12.9% to 18.5% |
| 10 | Befund | Smaller capex projects for early-stage and regional businesses | £500 to £250,000 | interest 8.5% to 15.5% |
A capex term loan helps UK businesses fund capital expenditure without draining cash reserves. Whether you are buying machinery, upgrading facilities, or investing in long-term infrastructure, this type of finance spreads the cost over an agreed repayment period. Choosing the right Capex Term Loan Lender in the UK can make a significant difference to your total borrowing cost and the flexibility you have as your business grows.
Different lenders take different approaches to capex lending. Some offer lower rates for larger, secured projects. Others focus on speed or work with earlier-stage businesses. Loan amounts, rate types, and eligibility criteria vary widely. Comparing the top Capex Term Loan Lenders in the UK helps you find a partner that matches your investment timeline, asset type, and financial profile.
Important: Funding Agent is a commercial finance broker, not a direct lender. The lenders listed here offer term loans suitable for capital expenditure, but eligibility depends on factors including trading history, turnover, and the specific asset being financed. Always review terms carefully before committing to a long-term capex agreement.
Funding Agent
Published loan rangeFrom £10,000 to up to £1,000,000
Rate typeInterest or factor rate
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.
One Stop Business Finance
Published loan range£100,000 to £3,000,000
Rate typeinterest 1.6% to 3%
Overview: One Stop Business Finance offers secured term loans from £100,000 to £3,000,000, making it a strong fit for businesses planning significant capital expenditure on property improvements, infrastructure upgrades or large-scale equipment purchases.
With interest rates from 1.6% to 3%, this lender provides cost-effective funding for established businesses that can offer suitable security against long-term asset investments.
Best next step: Ideal for high-value capex with available security.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Competitive rates for large capex borrowing
- Loans up to £3m for major projects
- Structured terms aligned to asset lifespan
Need to know
- Requires suitable security such as property or assets
- Best suited to businesses with strong trading history
- Legal and valuation costs may apply
Expert take
For businesses undertaking substantial capital projects, the combination of large loan sizes and competitive rates makes One Stop Business Finance a compelling option, provided suitable security is available.
Source:https://www.osbf.co.uk/
Cashera
Published loan range£10,000 to £100,000
Rate typefactor 1.2% to 1.49%
Overview: Cashera provides term loans from £10,000 to £100,000 with funding in as little as 24 hours, suiting businesses that need to move quickly on equipment purchases or smaller-scale capital upgrades without lengthy approval processes.
Using factor-based pricing from 1.2% to 1.49%, this lender offers a straightforward funding structure for SMEs investing in machinery, technology or modest fit-out projects.
Best next step: Fast funding for urgent equipment or fit-out needs.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Rapid 24-hour funding turnaround
- Loans from £10,000 for smaller capex
- Simple factor-rate pricing structure
Need to know
- Factor rates mean total cost is fixed upfront
- May require personal guarantee from directors
- Strong trading history typically required
Expert take
Cashera suits businesses needing to fund urgent capital purchases where speed is critical. The factor-rate model provides cost certainty, though it may work out more expensive than interest-based alternatives.
Source:https://cashera.co.uk/
Sigma-lending
Published loan range£50,000 to £150,000
Rate typefactor 1.25% to 1.5%
Overview: Sigma-lending offers term loans from £50,000 to £150,000 with 24-hour funding, positioning it well for mid-tier capital expenditure such as production equipment, commercial vehicles or technology infrastructure upgrades.
With factor rates between 1.25% and 1.5%, businesses receive straightforward pricing that makes it easy to calculate the total cost of borrowing against planned capital investments.
Best next step: Fast mid-value funding for equipment and tech capex.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Same-day decisions on capex applications
- Loans from £50k suit mid-range projects
- Transparent factor-based pricing model
Need to know
- Fixed total cost agreed at the outset
- May require directors to provide personal guarantees
- Business trading history will be assessed
Expert take
Sigma-lending is a practical fit for businesses that have identified a clear capital investment need and want a quick, no-surprises funding solution. The mid-range loan sizes bridge the gap between micro loans and major secured facilities.
Source:https://sigma-lending.com/
Finance for enterprise
Published loan range£1,000 to £2,000,000
Rate typeinterest 6.5% to 13.5%
Overview: Finance for enterprise provides term loans from as little as £1,000 up to £2,000,000, giving businesses exceptional flexibility to fund everything from minor equipment purchases through to substantial capital expenditure programmes.
Interest rates from 6.5% to 13.5% and funding within three days make this lender a versatile choice for SMEs investing in machinery, technology, vehicles or business premises improvements.
Best next step: Wide loan range suits capex of any scale.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Loans from £1k to £2m for capex
- Funding available within three working days
- Flexible approach to different asset types
Need to know
- Affordability and trading history will be reviewed
- Personal guarantees may be required from directors
- Rates vary based on credit profile and security
Expert take
The breadth of this lender's loan range is its standout feature for capex. Whether you need a small equipment upgrade or a major investment programme, Finance for enterprise can scale to match your requirements.
Shawbrook
Published loan range£25,000 to £350,000
Rate typeinterest 8% to 18%
Overview: Shawbrook specialises in secured term loans from £25,000 to £350,000, making it a natural fit for established SMEs looking to finance capital expenditure against property or other tangible business assets.
With interest rates ranging from 8% to 18% and funding available within two days, Shawbrook balances speed with structured lending that aligns repayment to the useful life of the asset being financed.
Best next step: Best for asset-backed capex by established businesses.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Secured terms aligned to asset lifespan
- Funding decisions within two working days
- Loans up to £350,000 for major capex
Need to know
- Tangible security such as property is required
- Strong trading history and affordability checks apply
- Legal and valuation costs may be added
Expert take
Shawbrook is a solid choice for established SMEs that have assets to secure against. The lender's structured approach to capex means repayment terms can be matched to how the investment delivers value over time.
SWIG Finance
Published loan range£500 to £250,000
Rate typeinterest 6% to 6.18%
Overview: SWIG Finance offers term loans from £500 to £250,000 with notably competitive interest rates between 6% and 6.18%, making it an attractive option for smaller businesses planning modest capital expenditure on equipment, tools or premises improvements.
With funding available within 24 hours, SWIG Finance combines speed and affordability for SMEs that need to invest in productive assets without the burden of high-cost borrowing.
Best next step: Low-rate capex funding for smaller investment needs.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Competitive rates starting from just 6%
- Loans available from as little as £500
- Rapid 24-hour funding for urgent capex
Need to know
- Strong trading history will be assessed
- Directors may need to provide personal guarantees
- Loan limits may not suit large-scale capex
Expert take
For smaller businesses with modest capital investment plans, SWIG Finance offers some of the most competitive rates on the market. It is particularly well-suited to sole traders and micro-SMEs upgrading essential equipment.
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NatWest Bank
Published loan range£500 to £10,000,000
Rate typeinterest 4.5% to 10.5%
Overview: NatWest provides fixed and variable rate term loans from £500 to £10,000,000, covering the full spectrum of capital expenditure from small equipment purchases through to major infrastructure and property development projects.
With interest rates from 4.5% to 10.5%, NatWest offers some of the most competitive pricing available, though bank underwriting processes may mean longer decision times compared to alternative lenders.
Best next step: Broad capex lending with competitive bank rates.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Loans available up to £10m for capex
- Competitive bank rates from 4.5% interest
- Fixed and variable rate options available
Need to know
- Bank underwriting can be slower and stricter
- Strong trading history and affordability evidence needed
- Personal guarantees may still be required
Expert take
NatWest is a natural starting point for businesses with established banking relationships. The rate advantage is real, but businesses should factor in longer approval timelines when planning their capex schedule.
Source:https://www.natwest.com/business/loans-and-finance.html
Tide Bank
Published loan range£500 to £20,000,000
Rate typeinterest 5% to 11.5%
Overview: Tide offers limited company loans from £500 to £20,000,000, providing a digital-first approach to capex funding that suits incorporated businesses investing in equipment, technology, property improvements or scaling operations.
Interest rates from 5% to 11.5% are competitive for a digital lender, and Tide's platform integrates seamlessly with its business banking services for existing account holders managing capital expenditure.
Best next step: Digital-first capex loans for limited companies.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Loans up to £20m for substantial capex
- Integrated with Tide business banking platform
- Competitive rates from 5% for strong profiles
Need to know
- Available to limited companies only, not sole traders
- Bank-style underwriting applies despite digital platform
- Security may be required for larger loan amounts
Expert take
Tide's proposition works best for limited companies that already use its banking services. The seamless integration between lending and banking can simplify cash flow management around capital investment.
Accredo
Published loan range£25,000 to £1,500,000
Rate typeinterest 12.9% to 18.5%
Overview: Accredo provides commercial loans and leases from £25,000 to £1,500,000 with a clear focus on equipment, vehicles, machinery and other productive assets, making it a dedicated capex specialist rather than a general business lender.
Interest rates range from 12.9% to 18.5%, reflecting the specialist nature of asset-backed lending, with funding typically available within five working days for businesses acquiring or refinancing capital equipment.
Best next step: Purpose-built for equipment and machinery capex financing.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Specialist focus on equipment and asset finance
- Loans up to £1.5m for large asset purchases
- Funding available within five working days
Need to know
- Rates start higher than general business loans
- Security is typically the asset being financed
- Strong trading history and affordability checks required
Expert take
Accredo is the most capex-focused lender on this list. For businesses that need to finance specific assets like machinery or vehicles, the lender's specialist underwriting can offer terms that generalist providers may not match.
Source:https://www.accredo.co.uk/
Befund
Published loan range£500 to £250,000
Rate typeinterest 8.5% to 15.5%
Overview: Befund offers NPIF II smaller loans from £500 to £250,000 with interest rates between 8.5% and 15.5%, providing an accessible route to capex funding for newer businesses that may struggle to meet the trading history requirements of mainstream lenders.
Funding takes around one week, which is slightly longer than some alternatives, but the lender's willingness to consider businesses with limited trading history makes it a valuable option for early-stage capital investment.
Best next step: Accessible capex loans for businesses with limited history.
More info
Company stats
Eligibility
Loan range
Rates and debtor rules
Benefits
- Considers businesses with shorter trading history
- Loans available from just £500 for micro-capex
- Part of the Northern Powerhouse Investment Fund
Need to know
- Funding takes around one week to complete
- May not suit businesses outside eligible regions
- Affordability and personal guarantees still required
Expert take
Befund fills an important gap for newer businesses that have viable capital investment plans but limited borrowing history. The NPIF II backing adds credibility, though regional eligibility criteria may apply.
Source:https://www.befund.org/
Business Loan Calculator
What qualifies as capex expenditure for a UK term loan
Capital expenditure (capex) refers to spending on assets that deliver long-term value to a business. For UK term loan purposes, this typically includes purchasing machinery, plant, or production equipment; acquiring commercial vehicles or fleet assets; refurbishing or extending business premises; installing new IT infrastructure or software systems; and buying freehold property or long leasehold interests.
Lenders distinguish capex from operational spending because the asset itself often holds resale value. This can strengthen a loan application, as the asset may serve as collateral. Most capex term loan providers in the UK expect the investment to generate a return over several years, not months. Be ready to explain how the asset will support revenue growth or efficiency gains when you apply.
How capex term loan structures work for UK businesses
Capex term loans in the UK are structured to match the lifespan of the asset being financed. Terms typically range from one to ten years, with longer terms for property investments. Repayments are usually fixed monthly instalments, which makes budgeting straightforward.
Interest rates can be fixed or variable. Fixed rates provide certainty, while variable rates may start lower. Some lenders offer a capital repayment holiday at the start, giving businesses time to install the asset before full repayments begin.
Security requirements vary. For larger loans, lenders may take a charge over the purchased asset. Directors may also need to provide a personal guarantee. Unsecured capex loans are available up to certain limits, though rates tend to be higher. Aligning the loan term with the asset's useful life is essential.
Using a capex term loan effectively for capital investment
A capex term loan works best when the asset starts generating returns quickly. UK businesses should calculate the expected payback period before borrowing. If new machinery reduces production costs by a clear margin against monthly repayments, the financial case is straightforward.
Avoid using capex loans for short-term working capital needs. Mixing long-term debt with day-to-day spending can strain cash flow. Match the loan purpose to assets that will outlast the repayment term.
Consider timing your application around your business cycle. If you are approaching a busy trading period, securing funding beforehand lets you install equipment when it is most needed. Some UK capex lenders also offer seasonal repayment options, which help businesses with uneven revenue patterns.
Comparing UK capex term loan lenders: what to look for
Not all capex term loan lenders serve the same types of businesses. When comparing options, focus on loan size limits and whether they match your investment need. Check term length flexibility and any early repayment charges. Compare whether the rate is fixed or variable, and what security or personal guarantees are required.
Also review minimum trading history and turnover thresholds, as these vary widely. Traditional banks often offer lower rates but have stricter eligibility criteria. Alternative lenders may accept younger businesses or lower turnovers, though rates can be higher. Some UK lenders specialise in particular asset types, such as commercial vehicles or manufacturing equipment. A broker can help match your specific capex project to lenders that understand your industry and investment type.
FAQs
A capex term loan provides a lump sum of capital upfront, which your business then repays in fixed monthly instalments over an agreed period. The funds are specifically used for capital expenditure, such as purchasing machinery, upgrading premises, or investing in long-term infrastructure. The loan can be structured as either secured (backed by business assets) or unsecured depending on the lender and your business profile.
Eligibility varies by lender, but most will assess your business's trading history, turnover, credit rating, and the purpose of the capital expenditure. Generally, lenders prefer businesses that have been trading for at least two years with a solid financial track record. Startups and younger businesses may still qualify but often face stricter criteria, such as providing a personal guarantee or offering security against the loan.
Interest rates and terms depend on factors including the loan amount, whether the loan is secured or unsecured, your business's credit profile, and the lender's own criteria. Repayment terms for capex term loans typically range from one to ten years, sometimes longer for larger secured loans tied to property improvements. Rates can be fixed or variable. It is always best to compare quotes from multiple lenders to understand the rates available to your business.
With a capex term loan, your business owns the asset outright from the start and the loan is repaid over time, whereas asset finance or leasing may involve the lender retaining ownership until the final payment is made. A term loan can offer more flexibility in how you use the funds, while asset finance is often tied to a specific piece of equipment. The right choice depends on your business's cash flow, tax considerations, and long-term plans for the asset.
Look for lenders that offer clear terms, transparent pricing, and a track record of funding businesses in your sector. Key factors to compare include the interest rate (APR), arrangement fees, early repayment charges, repayment flexibility, and whether the loan is secured or unsecured. It is also worth checking customer reviews, the speed of the application process, and whether the lender takes time to understand your capital expenditure plans rather than applying a one-size-fits-all approach.
Yes, some lenders offer unsecured capex term loans, though loan amounts may be lower and interest rates potentially higher compared to secured options. Unsecured loans do not require you to put up business assets as collateral, which can make them quicker to arrange. However, lenders may still request a personal guarantee from directors. Whether you qualify for an unsecured option will depend on your business's creditworthiness and financial strength.
