Does asset finance from UK Business Loans cover IT, software and technology upgrades?

Short answer: Yes — many of the asset finance products we help arrange can fund IT hardware, on‑premise software licences and a range of technology upgrade costs. Options and eligibility depend on the type of technology, whether there is a tangible asset, the lender’s policy and deal size. Complete a free eligibility check to see what matches your business requirements.

We are an introducer — we do not lend and we do not give regulated financial advice. Our service is free and no-obligation. Enquiries are information to help match you to lenders/brokers and are not loan applications.

Summary

Asset finance designed for technology upgrades is a common and effective way for companies to spread the cost of IT investment rather than paying up front. Typical items funded include servers, laptops, POS hardware, on‑premise software licences and some implementation/integration costs. Financing subscription software (SaaS) and purely cloud services can be more complex but is sometimes possible through vendor or subscription financing arrangements.

If you want to check whether a planned IT project or software purchase can be funded, start with a quick enquiry — we match businesses to lenders and brokers who specialise in technology and equipment funding. Get Quote Now — Free Eligibility Check

What is asset finance?

Asset finance is an umbrella term for products that fund the purchase or use of business assets. Common structures include:

• Hire Purchase — you typically own the asset after the agreement ends.
• Finance Lease — you hire the asset for an agreed term; ownership usually remains with the funder unless you buy out at the end.
• Operating Lease — effectively renting the asset for a period; useful for Opex treatment.
• Equipment loan — a secured loan to buy the asset outright.
• Vendor / manufacturer finance — funding offered in partnership with suppliers, often available for software + hardware bundles.

Businesses use asset finance to preserve working capital, smooth cashflow, align payments with asset life, and enable staged upgrades without a large upfront hit to the balance sheet.

Can asset finance cover IT, software and technology upgrades?

Yes — in many cases. The most fundable technology costs are those with a tangible or transferable value. Below is a breakdown by category so you can quickly see where asset finance is typically available and where lenders may be more selective.

Hardware

Highly fundable. Lenders commonly finance laptops, desktops, servers, storage arrays, switches, routers, POS terminals, telephony systems and specialist hardware (e.g., industrial IoT gateways). New and good-condition used kit can be funded.

On‑premise software & perpetual licences

Often fundable when the licence is perpetual and sits with the business as an identifiable asset. Large ERP, CRM or database licences that are sold as a capital purchase are commonly included in finance packages.

SaaS / subscription-based software

More complex. Pure monthly subscriptions with no tangible asset are less likely to be financed by traditional asset finance. However, solutions exist: vendor finance packages, subscription financing products or working capital/term loans that convert subscription costs into funded arrangements. Lenders vary widely on this.

Implementation, integration and project costs

Some lenders will include installation, migration, consultancy and integration costs within a finance package if they directly relate to the asset purchase and are clearly costed in supplier quotations.

What’s usually fundable — quick checklist

• Fundable (good candidates): laptops/desktops, server racks, storage, network infrastructure, POS & payment terminals, phone systems, printers, on-premise software licences, cybersecurity appliances, data centre kit, and project-related implementation costs.
• Possibly fundable (case-by-case): cloud migration fees, SaaS subscriptions (via vendor or subscription finance), bespoke software development (if assetised), maintenance contracts (sometimes rolled into funding).
• Usually excluded: consumables, low-value items below lender minimums, purely ad-hoc operating subscriptions without an asset component.

Which lenders and products cover tech?

Through UK Business Loans you can be connected to a range of lenders and brokers experienced in technology finance, including:

• Specialist asset finance companies that focus on IT and telecoms.
• High-street and challenger banks with equipment finance teams.
• Independent brokers with panels of technology-friendly lenders.
• Vendor or manufacturer finance schemes for bundled hardware + software deals.

Common product choices depending on objectives:

• Hire Purchase — good where you want ownership at the end and to claim capital allowances.
• Finance Lease — lower payments and flexibility, suitable for fast-refresh technology cycles.
• Operating Lease — Opex treatment, handy for off-balance-sheet preferences.
• Vendor finance / subscription finance — best when the supplier offers a packaged funding solution for hardware + software + services.

Typical eligibility, documentation & timescales

For technology asset finance lenders commonly request:

• Company details: registration, trading history and industry sector.
• Turnover and management accounts (required for larger deals).
• Director/owner details and ID checks.
• Supplier quotes, pro-forma invoices and project scope.
• Bank statements for recent trading and cashflow checks.

Deal sizes and timings (guide):

• From around £10,000 upwards — UK Business Loans typically arranges deals at £10k and above.
• Small deals (£10k–£25k): can be approved quickly, sometimes within days.
• Medium deals (£25k–£250k): standard underwriting, usually several days to a few weeks.
• Large or complex deals (£250k+): bespoke negotiation and longer lead times.

Costs, terms & tax treatment

Costs vary by lender, asset type, term, and the business’s credit profile. Typical features include:

• Term lengths: commonly 24–60 months for IT, though shorter or longer terms are possible.
• Deposit or initial rental: some products require a deposit or upfront VAT payment.
• Interest and fees: expressed as a fixed rate, APR or equivalent — influenced by risk and asset lifespan.
• VAT: financed VAT may need to be paid upfront or added to the finance; check with lenders and your accountant.

Accounting treatment differs by product: hire purchase often treated as a capital asset; operating leases as Opex. Speak to your accountant about capital allowances and the best tax treatment for your business (this is not financial advice).

How to get finance with UK Business Loans

1. Complete our short enquiry form — it takes a couple of minutes. Your enquiry is not a credit application; it helps us match you to the right lenders.
2. We match you to specialist lenders and brokers with IT/technology expertise.
3. Selected partners contact you to request quotes, review supplier proposals and provide finance options.
4. You compare offers and proceed with the lender that best fits your business.

Get Started — Free Eligibility Check (no obligation, no upfront cost).

Common scenarios — quick examples

Example 1 — Retail chain POS upgrade: A multi-site retailer financed new POS terminals and inventory management software using a hire purchase plan over 36 months. This preserved cashflow and allowed a managed roll-out.

Example 2 — SME cloud migration: A growing business financed firewall hardware, servers and a secure migration project. Implementation costs were included in the funding package via an equipment loan.

Example 3 — Reseller bundled solution: An IT reseller offered vendor finance to a client for bundled hardware plus three years of managed services; the vendor finance package covered both the upfront hardware and the subscription element under commercial terms.

Risks, exclusions & questions to ask lenders

• Ownership: will you own the asset at the end? (Hire purchase vs lease).
• Residual values: how will residual values be calculated and applied?
• Early termination: what are exit costs if you replace or return equipment early?
• Maintenance and updates: who is responsible and are maintenance contracts included?
• Software licences & transfers: can licences be transferred if ownership changes?

Red flags: lenders who won’t accept supplier quotes, have unclear fees, or make unrealistic approval promises. UK Business Loans introduces you to lenders and brokers — always read terms carefully and take independent advice where needed.

Frequently asked questions

Next steps

If you’re planning IT or software upgrades and want to explore funding options, we can help match your project to lenders and brokers who specialise in technology finance. Complete a short enquiry now and receive free, no-obligation quotes from suitable providers.

Get Quote Now — Free Eligibility Check

Further reading and resources: if you’d like more detail about how asset finance works across sectors, search our guidance or speak to one of our introductions — we’ll match you to the best lender or broker for your technology upgrade.

Important: UK Business Loans is an introducer. We do not lend or give regulated financial advice. Submitting an enquiry helps us find lenders and brokers that may be able to assist; it is not an application. Always read lender terms and consult your accountant where tax or accounting treatment is concerned.

Related topic: learn more about asset finance and how it can be structured for technology purchases on our asset finance information page: asset finance.

1. Can asset finance cover IT hardware and on‑premise software upgrades? — Yes, many asset finance products can fund IT hardware, on‑premise/perpetual software licences and related technology upgrade costs.
2. Can I finance SaaS or subscription‑based software? — Pure SaaS is harder to fund via traditional asset finance, but options exist such as vendor/subscription finance, working capital loans or bundled vendor packages.
3. Which asset finance products are best for technology purchases? — Common choices are hire purchase for ownership, finance leases for flexibility, operating leases for Opex treatment and vendor finance for bundled hardware+software deals.
4. What minimum deal size do you arrange for IT and tech funding? — UK Business Loans typically arranges asset finance deals from around £10,000 and upwards.
5. Will enquiring via UK Business Loans affect my business credit score? — No — submitting an enquiry is a soft initial check and will not affect your credit score unless a lender conducts formal checks later.
6. How quickly can I get technology asset finance approved and paid? — Small deals can be approved within days, medium deals usually take several days to a few weeks, and large or bespoke programmes take longer.
7. Can implementation, integration or migration costs be included in the funded amount? — Yes — many lenders will include installation, consultancy and project costs if they directly relate to the asset purchase and are supported by supplier quotes.
8. How are VAT, tax and accounting treated on IT asset finance? — Treatment varies by product (e.g., hire purchase vs operating lease) and lender—VAT may be payable upfront or financed—so consult your accountant for tax advice.
9. What documentation do lenders typically require for IT asset finance? — Lenders commonly ask for company registration details, trading history, turnover/management accounts, director ID, supplier quotes/pro‑forma invoices and recent bank statements.
10. How does UK Business Loans help me secure tech finance and is the enquiry an application? — We act as a free introducer that matches you to specialist lenders and brokers—your enquiry is not a loan application and carries no obligation.