Equipment finance for newly formed limited companies — can you get it?

Summary: Yes — many newly formed limited companies can secure equipment finance. Approval depends on lender appetite, the director’s experience and credit record, the equipment’s type and residual value, and whether there are contracts or purchase orders that show future income. UK Business Loans helps newly formed companies (finance needs generally from £10,000+) by matching them—quickly and free—to specialist lenders and brokers so you can compare quotes and proceed with no obligation. Get started with a Free Eligibility Check below.

Get Quote Now — Free Eligibility Check

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Table of contents

• Quick answer
• What is equipment finance?
• Can newly formed limited companies be accepted? What lenders look for
• Equipment types & sectors where new companies gain approval fastest
• Typical lender requirements & documents
• How UK Business Loans helps newly formed limited companies
• Costs, terms and what to expect
• Practical tips to improve approval chances
• How to apply through UK Business Loans — step-by-step
• FAQs
• Final steps & compliance note

Quick answer

Yes — often possible. Lenders vary: some require 12–24 months of trading, others will finance brand-new limited companies where the director’s experience, a strong business plan, signed contracts or purchase orders and the equipment’s high resale value reduce perceived risk. UK Business Loans is an introducer: we quickly match your enquiry to lenders and brokers who specialise in funding newer companies and equipment acquisitions. There’s no obligation and completing our enquiry does not affect your credit record. Get Quote Now — Free Eligibility Check.

What is equipment finance?

Equipment finance (also called asset finance) is a group of funding products that allow businesses to acquire machinery, vehicles, technology, catering equipment, medical devices and more without paying the full purchase price upfront. Instead you spread the cost over an agreed term while you use the asset.

Common product types

• Hire Purchase (HP) — you hire the asset; ownership transfers after the final payment.
• Finance Lease / Operating Lease — you pay to use the asset; ownership may remain with the funder (operating lease) or there can be an option to purchase (finance lease).
• Chattel mortgage — loan secured against the asset with the company as owner from day one.
• Sale-and-leaseback — existing owners sell an asset to raise capital and lease it back.
• Vendor finance — finance provided by the supplier or manufacturer.

Practical note: VAT and capital allowances matter — VAT-registered businesses can usually reclaim VAT on qualifying purchases, and certain tax treatments apply depending on the finance type. Your matched broker/lender can explain tax implications for your situation.

Can newly formed limited companies be accepted? What lenders look for

Not all lenders treat start-ups the same. Specialist funders and brokers routinely work with newly formed limited companies, while mainstream banks often prefer longer trading histories. Below are the main factors lenders will assess when considering a new limited company.

Key lender considerations

• Company age & trading history: Some lenders accept 0 months; others prefer 6–24 months. Evidence of contracts or purchase orders can offset short trading history.
• Director experience: Relevant sector experience and a strong CV can significantly improve chances of approval.
• Personal credit: Director(s)’ personal credit profiles are often reviewed, especially for very new companies.
• Business plan & cashflow: A concise plan and realistic cashflow forecast demonstrate viability.
• Contracts & purchase orders: Signed client contracts or supplier purchase orders are strong persuasive evidence.
• Equipment type, age & resale value: Newer, specialised or high-resale-value assets (e.g., construction plant, commercial vehicles) are easier to finance than low-value, fast-depreciating items.
• Deposit & repayments: Lenders may request a deposit (commonly 0–30% depending on risk) or higher monthly payments for start-ups.
• Security: Some lenders ask for personal guarantees or charges against assets, though specialist lenders sometimes avoid personal guarantees if the asset/value justifies lending.

Mini case: A newly incorporated construction limited company with a director who has 10 years’ sector experience plus a signed contract to supply a client is frequently able to secure hire purchase for plant machinery, even with limited company trading history.

Types of equipment and scenarios where new limited companies gain approval fastest

Some assets and sectors attract lenders’ confidence more readily:

• Construction & plant — diggers, excavators and plant with strong secondary markets are often financeable.
• Vehicle fleets — vans, trucks and specialist vehicles usually qualify for hire purchase or lease deals.
• Manufacturing & engineering — CNC machines, presses and production equipment with clear asset value.
• Medical & healthcare — diagnostic equipment and devices with strong resale markets.
• Catering & hospitality — kitchen fit-out equipment and appliances.
• IT & office technology — typically financed via operating leases (shorter terms, asset refresh options).

Specialist lenders and brokers can often approve new companies faster where the asset is high-value, has a liquid resale market, or is underpinned by a contract.

Typical lender requirements & documents (checklist)

Prepare these to speed up quotes and decisions:

• Companies House registration number and certificate of incorporation
• Director photo ID (passport/driving licence) and proof of address
• Business bank statements (often 3–6 months; some lenders request fewer for new firms)
• Supplier quote/invoice or pro forma invoice for the equipment
• Purchase orders or signed contracts (if available)
• Business plan and cashflow forecast (helpful where trading history is limited)
• VAT registration (if applicable)

Having these ready greatly reduces turnaround times for lender responses.

How UK Business Loans helps newly formed limited companies

UK Business Loans is an introducer that connects newly formed limited companies (finance requests typically from £10,000 upwards) to lenders and brokers who actively deal in equipment funding. We do not lend money — we match you to partners who can provide tailored quotes.

• Short enquiry: Complete a concise enquiry (about 2 minutes).
• Targeted matches: We match you with brokers/lenders experienced with new companies and your sector.
• Rapid responses: Many matches lead to broker contact within hours once documents are supplied.
• No obligation: You receive quotes and decide whether to progress. Submitting the enquiry does not affect your credit score.

For more detail on the mechanics and product options, see our overview on equipment finance. To begin, use our quick form to receive matched lender contact: Get Quote Now — Free Eligibility Check.

Costs, terms and what to expect

Costs vary widely. Key drivers of price and terms include the lender’s perceived risk, the asset type/age, deposit size, loan/lease term and whether a personal guarantee is taken. Typical patterns:

• Term lengths: Machinery & vehicles often 2–7 years; IT may be 2–4 years.
• Deposits: May range from 0% (with stronger cases) to 30%+ for higher-risk profiles.
• Payments & APR: Vary by lender — expect different quotes; don’t rely on a single rate without comparing offers.
• Fees: Arrangement fees, documentation fees or end-of-term purchase options can apply.

Because every case differs, matched brokers will provide tailored illustrations and explain total cost of credit and any security requirements. UK Business Loans does not provide regulated financial advice — our role is to introduce and match.

Practical tips to improve approval chances

• Provide clear supplier quotes and any purchase orders or client contracts.
• Highlight director sector experience with a short CV or LinkedIn profile.
• Prepare a simple cashflow forecast showing capacity to meet repayments.
• Choose newer assets with good resale value where possible.
• Be ready to offer a reasonable deposit or accept limited personal support if needed.

These steps often reduce lender queries and speed up positive decisions.

How to apply through UK Business Loans — step-by-step

1. Complete the enquiry: Click the short form and give basic company and equipment details (2 minutes). Start Your Enquiry — Free Eligibility Check.
2. We match you: We introduce your case to lenders/brokers most likely to be interested.
3. Brokers contact you: They request documents, provide options and illustrations.
4. Compare & decide: Review offers, pick the best fit and proceed directly with the lender/broker.

What to expect: contact by phone/email, requests for the documents listed earlier, and personalised offers. The enquiry stage does not perform a credit search — lenders may do full checks later when you apply.

Frequently asked questions

1. Can a newly formed limited company get equipment finance?

Yes. Many lenders and specialist brokers work with newly formed limited companies, especially where the director has relevant experience or where there’s a strong contract or asset with good resale value.

2. Will applying through UK Business Loans affect our credit score?

No. Our initial enquiry is an introduction step and does not involve a credit search. Lenders may carry out checks later when you apply.

3. Do I need to provide a personal guarantee?

Not always. Some lenders require it for new companies; specialist asset lenders sometimes lend against the asset without a guarantee where asset value is strong.

4. What is best for IT vs heavy machinery?

IT is often suited to operating leases (shorter terms, asset refresh). Heavy machinery and vehicles typically fit hire purchase or chattel mortgages with longer terms.

5. How long does approval take?

After matching, brokers often contact you within hours. Full approval depends on document supply; many simple cases conclude in days to a few weeks.

6. Does UK Business Loans lend money?

No — we introduce businesses to lenders and brokers. We help you find the right partners and receive multiple quotes.

7. Is the service free?

Yes. Our introduction and matchmaking service is free and without obligation for businesses.

8. What minimum finance amount do you handle?

We typically work with equipment finance requests from around £10,000 and upwards.

Ready to check eligibility?

If you’re a newly formed limited company needing equipment, get matched quickly with lenders and brokers who can help. Completing our short enquiry is free, takes around 2 minutes, and does not affect your credit score. Get Quote Now — Free Eligibility Check

Compliance & important note: UK Business Loans is an introducer that connects businesses to lenders and brokers. We do not lend money or provide regulated financial advice. Any finance is subject to the lender’s terms and eligibility checks.

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Related pages you may find useful: Asset finance, How it works, Business loans. For policy and complaints information see our Privacy Policy and Terms & Conditions.

1. Can a newly formed limited company get equipment finance?
Yes — many newly formed limited companies can secure equipment finance if they have strong director experience, valuable/resalable assets, or supporting contracts/purchase orders that reduce lender risk.

2. What types of equipment finance suit new limited companies?
Common options for new companies include Hire Purchase, Finance Leases, chattel mortgages, sale-and-leaseback and vendor finance depending on the asset and sector.

3. How much can I borrow for equipment finance through UK Business Loans?
UK Business Loans typically matches enquiries for equipment finance from around £10,000 upwards, with partner lenders offering a wide range of amounts depending on the asset and credit profile.

4. Will submitting an enquiry through UK Business Loans affect our business credit score?
No — completing the initial enquiry is an information-introduction step and does not perform a credit search, though lenders may carry out checks later if you proceed.

5. Do I need to provide a personal guarantee for equipment finance?
Not always — some lenders require personal guarantees or director support for very new companies, but specialist asset lenders may lend against the equipment without a guarantee where asset value and contracts justify it.

6. What documents will lenders typically ask for when applying for equipment finance?
Lenders usually request company registration details, director ID and proof of address, business bank statements, supplier quotes/invoices, and any contracts or purchase orders, plus a business plan or cashflow forecast for very new firms.

7. How fast will lenders or brokers contact me after I submit an enquiry?
You can often expect contact within hours during business hours, with full approval timelines ranging from days to a few weeks depending on document readiness and lender processes.

8. What costs and fees should I expect with equipment finance?
Costs vary by lender and include deposit requirements, interest/APR, arrangement or documentation fees and end-of-term purchase options, so it’s important to compare multiple tailored quotes.

9. Does UK Business Loans provide the finance or regulated financial advice?
No — UK Business Loans is a free introducer that connects you with FCA-regulated brokers and lenders who provide finance and can explain regulated advice or lending terms.

10. Can businesses with little or poor trading history or bad credit get equipment finance?
Yes — some specialist lenders and brokers work with limited trading histories or imperfect credit records when strong assets, director experience or supporting contracts reduce perceived risk.