Barclays asset finance: how it works, and how to compare your options

Barclays offers business asset finance, delivered in partnership with Propel Finance, to help businesses fund the purchase or leasing of operational vehicles, equipment and machinery.

Asset finance is one of several ways to fund a major business purchase, so it’s worth comparing the available funding and debt finance options before you commit to a single lender.

Let’s explore how you can finance a new business asset, what Barclays’ partnership with Propel Finance offers and the alternative routes for funding a capital asset purchase. 

What Barclays asset finance covers

Buying a new asset for the business can be expensive! But when there’s an operational necessity for a new van, or an upgrade to your current equipment, a key way to cover that expense is to apply for asset finance.

Asset finance will typically come in two types:

1. Hire purchase: With a hire purchase agreement, you spread the cost of buying the asset across regular repayments. The key benefit is that you can use the asset immediately while paying off the costs. Generally, once the repayments are complete, you’ll legally own the asset.

2. Leasing: When you lease an asset, this spreads the cost across regular rental payments. You have full use of the asset without owning it. This can be useful when cash is tight, but you need the asset to keep trading. Unlike hire purchase, you do not automatically have legal ownership of the asset at the end of the agreement.

Barclays’ asset finance offering is not an in-house product. Their asset finance is delivered through the bank’s partnership with Propel Finance, a specialist asset finance provider with 30+ years’ experience of supplying finance to purchase vehicles, equipment and machinery.

You can borrow from £5,000 to £2 million to cover your capital asset purchases, with terms from 1 to 7 years to repay the balance.

Comparing a single lender to a multi-lender option

You’re in the market for asset finance and want to know the best options for your business needs. An important consideration is the difference between single-lender and multi-lender options in the finance market.

Single-lender asset finance

When you apply directly to a bank like Barclays, even via its partner, this means you’re limited to the lending appetite, finance criteria, eligibility rules and prices of that one lender. If the lender has a strong product, you might ignore the potential limitations. But if you want greater flexibility, it could be worth exploring a multi-lender option.

Multi-lender asset finance

With a multi-lender marketplace, applying for asset finance works slightly differently. One application is assessed across a panel of specialist asset finance lenders, so you’re comparing multiple deals rather than taking whatever terms one lender proposes.

This gives you a greater choice of deals, offering the most beneficial terms, interest rates and repayment amounts.

Getting the best deal for your money

Taking on any kind of debt finance is a big decision for your business. It’s good practice to explore the wider finance market and asset finance options before you make any decision.

Talk to your peers, your financial advisers and your accountant to gauge what the best finance solution may be for your circumstances. And don’t rush into a decision. 

Alternatives to Barclays asset finance

Opting for the multi-lender route gives you a more flexible approach to finding asset finance. The Funding Circle Marketplace is a panel of trusted partners that can fund a wide range of business assets, with finance to suit your specific needs as a growing business. 

With our Marketplace, you can:

• Borrow up to £5 million to fund your asset purchase 

• Enjoy terms from 1 to 7 years 

• Benefit from a dedicated UK-based account manager

• Access your funds quickly to purchase assets 

• Use capital allowance tax breaks to potentially save up to 25% - For further tax advice, please seek expert advice from a chartered accountant. 

How the finance works in practice

Let’s run through the numbers from one of our real-world deals and see how much it would cost to borrow £50,000 through our Marketplace. 

Figures are illustrative and taken from our asset finance calculator. Rates and credit amounts subject to a full credit assessment. 

• Asset Finance amount: £50,000

• Term: 60 months

• Administration fee: £295

• Interest: £10,461

• Monthly repayments: £1,013

• Total amount payable: £60,756

Apply for asset finance and a term loan at the same time

When you apply to Funding Circle, a single application can be assessed by our panel of finance partners for both asset finance and a term loan.

That’s one simple application with the potential to access two different finance products. This keeps your options open and brings real flexibility to your finance search. 

Who’s eligible for the Funding Circle Marketplace?

To be eligible to apply for asset finance through Funding Circle, your business needs to:

• Be based in the UK

• Be a limited company or LLP

• Have at least 1 year of trading history

• Have an annual turnover of at least £50,000

Before applying for any finance offers, it’s sensible to consult with your accounting, business and legal advisers, so you’re aware of the potential impact on your business and finances.

Funding Circle: the flexible way to fund your capital assets 

There’s no one answer to the question ‘What’s the best way to finance my asset purchases?’. Whether the best options come from big banks, like Barclays, or from a multi-lender provider like the Funding Circle Marketplace will be dependent on your circumstances. 

If you’re looking for multiple offers and a broad overview of the finance market, our Marketplace is an excellent place to start your search.

Apply today with Funding Circle

FAQs

What is Barclays asset finance?

Barclay’s asset finance allows you to borrow money to fund the cost of buying vehicles, equipment or machinery. You can use the asset immediately and make regular repayments over the agreed term of the finance agreement. 

Does Barclays lend asset finance directly, or through a partner?

Barclays asset finance offering is delivered via their partner, Propel Finance. 

What’s the difference between hire purchase and leasing?

With a hire purchase agreement, you repay the cost of the capital asset purchase over a specific period of time. At the end of the agreement, you’re the legal owner of the asset.

With a finance leasing agreement, you pay regular rental payments to lease the asset over the term of the agreement. You do not automatically own the asset at the end of the agreement. 

How much can I borrow with asset finance?

The specific amount you can borrow will be defined by your company’s financial position and the outcome of an asset finance application process. However, Barclays asset finance product offers funding of between £5,000 to £2 million, and deals through the Funding Circle Marketplace offer funding of up to £5 million.

Disclaimer

11/09/26 – While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.