Applying for asset finance: steps, documents and what to expect

Applying for asset finance usually takes four steps. You choose the asset and get a quote, check your eligibility, complete an application with details about your business and the asset, and then receive a decision and funding. With the right paperwork ready, many businesses get a decision within a few days.

This guide walks through the asset finance application process step by step, including the documents you'll need, what lenders look at and how to strengthen your application. All information in this guide is for informational purposes only and not to be treated as financial advice. 

What is asset finance?

Asset finance helps your business get the equipment, machinery or vehicles it needs without paying the full cost upfront. You spread the cost over an agreed term, and the asset itself usually acts as security for the agreement. You can also use asset finance to raise cash against assets your business already owns, which is known as asset refinance.

The main types include hire purchase, where you own the asset once you've made the final payment, and leasing, where you pay to use the asset for a set period. Our guide to asset finance explains each type in more detail.

Before you apply: what to prepare

A little preparation makes the application quicker and helps you compare offers properly.

Know what you need and why

Be clear about the asset you want to finance, what it will cost and how it will help your business. A lender will want to understand how the asset will earn its keep, for example by taking on more work, saving time or cutting running costs.

Get a quote for the asset

If you're buying new equipment, machinery or vehicles, get a written quote or pro forma invoice from the supplier or dealer. It should show:

• The make, model and specification

• Whether the asset is new or used, and its age if used

• The price, with VAT shown separately

• The supplier's details

For used assets, lenders may also ask for the serial number, mileage or hours used, or details of an inspection.

Decide how much to borrow

Work out whether you'll put down a deposit and how long you'd like to spread the cost over. A larger deposit reduces what you borrow. A longer term lowers monthly payments but usually means paying more interest overall. Check that the monthly repayments fit comfortably within your cash flow, including during quieter months.

Check your credit

Lenders will look at your business credit history and, for many small businesses, the personal credit history of the directors. It's worth checking your credit files before you apply so you can correct any mistakes. Our guide to preparing for credit checks explains what lenders look for.

Documents you'll need for an asset finance application

Every lender has its own requirements, and the documents you're asked for can depend on how much you're borrowing. Many providers ask for some or all of the following:

• Business details, such as your company registration number, registered address and how long you've been trading

• Director details, including names, home addresses and dates of birth

• Proof of identity and address for directors

• Recent business bank statements, often covering the last 3 to 6 months

• Filed accounts, usually your most recent year or two

• Management accounts, if your filed accounts are more than a few months old

• The supplier's quote or invoice for the asset you want to buy

• Details of any existing finance, including loans, leases and credit agreements

If you're applying for asset refinance, you'll usually also need proof that your business owns the asset outright, such as the original purchase invoice. Note, this is not an exhaustive list and requirements vary be lender.

Having these ready before you start can save days in the process.

How to apply for asset finance, step by step

The process varies between providers, but it usually follows these steps.

1. Check your eligibility

Start by checking you meet the lender's basic criteria, such as business type, trading history and minimum borrowing amount. Many lenders let you check eligibility with a soft search, which doesn't affect your credit score.

2. Submit your application

You'll share details about your business, your finances and the asset. This is often done online, with documents uploaded or sent on request.

3. The lender reviews your application

The lender assesses your business's finances, credit history and the asset itself. They may ask follow-up questions or request extra documents. For larger amounts, they may want to know more about how the asset fits your plans.

4. Receive and compare offers

If approved, you'll receive an offer setting out the amount, term, monthly repayments, interest rate or APR and any fees. Rates vary between providers and customers, so compare offers carefully and do your own research before signing up.

5. Sign the agreement and get your asset

Once you accept, you sign the finance agreement. For a new asset, the lender usually pays the supplier directly, and you can take delivery. For asset refinance, the funds are paid into your business bank account.

How long does an asset finance application take?

Timescales depend on the lender, the amount you're borrowing and how quickly you can provide documents. Straightforward applications with all the paperwork ready can often be decided within a few days. Larger or more complex deals, used assets or assets from overseas suppliers can take longer.

Through Funding Circle, decisions are usually made within 1 to 2 days once you've completed your application with your chosen provider.

What lenders look at when you apply

Lenders consider a mix of factors when deciding whether to approve your application and on what terms:

• Trading history. Many lenders set a minimum time in business.

• Financial performance. Turnover, profitability and cash flow show whether you can afford the repayments.

• Credit history. Both your business credit record and, often, the directors' personal credit records.

• The asset. Its type, age, value and expected resale value affect how much security it provides.

• Existing borrowing. How much other finance your business already has.

• Your deposit. A larger deposit reduces the lender's risk.

Because the asset acts as security, asset finance can be easier to access than some unsecured borrowing. Our guide to asset finance or a term loan compares the two.

Tips to strengthen your asset finance application

• Get your accounts up to date. Recent management accounts help if your filed accounts are out of date.

• Keep your bank statements tidy. Avoid unarranged overdrafts or returned payments in the months before you apply.

• Be ready to explain the asset. A short explanation of how it will earn its keep helps the lender understand your plans.

• Consider a deposit. Even a small deposit can improve the terms you're offered.

• Apply for what you can comfortably repay. Borrowing within your means makes approval more likely and protects your cash flow.

• Avoid multiple hard credit searches. Use eligibility checks that don't affect your credit score where possible.

*Note this is not an exhaustive list and requirements will vary by lender. It is important to seek professional advice before making any decisions on which type of finance suits your business needs. 

Applying for asset finance to buy new equipment

If you're buying new equipment, the process is usually straightforward because the asset has a clear price and value. The supplier's quote forms the basis of the application, and the lender usually pays the supplier directly once your agreement is signed.

New equipment may also bring tax benefits. Qualifying plant and machinery may be eligible for capital allowances, such as the Annual Investment Allowance, which can reduce your tax bill. How these apply depends on the type of finance and your business, so speak to your accountant. Our guide to tax breaks when buying a new asset covers the basics, and our equipment finance page shows the types of equipment you can fund.

*Note, this is not to be treated as tax advice. Please seek professional advice regarding tax implications on assets. For more guidance, check gov.uk for tax implications. 

Applying for asset refinance

If your business owns valuable equipment, machinery or vehicles outright, asset refinance lets you borrow against them to release cash. The application is similar, but the lender will need to confirm that you own the asset and value it. You'll usually need the original purchase invoice and details of the asset's age and condition. 

How to apply for asset finance with Funding Circle

Funding Circle makes applying for asset finance simple. Through our asset finance marketplace, we work with a panel of specialist lenders to find deals on vehicles, plant, machinery, equipment and green energy assets, from £10,000 up to £5 million over terms of 1 to 7 years.

Here's how it works:

1. Apply online in about 7 minutes. Complete our simple form. It won't affect your credit score if you're a limited company or LLP.

2. We find the right deals for you. Your dedicated Account Manager will call to talk through the options available.

3. Complete your application with your chosen provider. Decisions are usually made within 1 to 2 days. However this may be longer and decision times vary by application. 

4. Get funding for your asset. If approved, the funds are paid out quickly so you can get your asset.

When you apply for asset finance with us, we can also assess you for a business loan at the same time, without you having to apply again.

To apply for asset finance, your business needs to be a UK limited company or LLP. If you’re not sure, you can check your eligibility without affecting your credit score.

Apply for asset finance

Asset finance application FAQs

How do I apply for asset finance?

Choose your asset and get a quote, check your eligibility, then complete an application with details of your business, your finances and the asset. The lender reviews your application and, if approved, makes you an offer. Once you sign, the lender usually pays the supplier directly.

What documents do I need to apply for asset finance?

Lenders commonly ask for recent business bank statements, filed or management accounts, director details and proof of identity, and a supplier quote for the asset. Requirements vary between lenders and depend on how much you're borrowing.

Will applying for asset finance affect my credit score?

A full application usually involves a hard credit search, which shows on your credit file. Many lenders let you check your eligibility first with a soft search that doesn't affect your score. Through Funding Circle, our application form won't affect your credit score if you're a limited company or LLP.

How long does asset finance approval take?

Straightforward applications can often be decided within a few days, especially if your documents are ready. Through Funding Circle, decisions are usually made within 1 to 2 days once you've completed your application with your chosen provider.

Can I apply for asset finance on used equipment?

Yes, many lenders finance used equipment, machinery and vehicles. The asset's age, condition and value will affect the terms you're offered, and you may need to provide extra details such as serial numbers or inspection reports.

Do I need a deposit for asset finance?

Not always. Some agreements need no deposit, while others ask for one or offer better terms if you pay one. A deposit reduces the amount you borrow and your monthly repayments.

Disclaimer

04/10/26 –  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, tax or legal advice. Readers should seek independent tax advice from a qualified professional. 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.