How much could I borrow for plant & construction equipment finance in the UK?

Quick summary: Most UK businesses can access equipment financing from around £10,000 upwards. Typical ranges: small asset purchases £10,000–£50,000; SME fleets or package deals £50,000–£500,000; large contractors and specialist fleets £500,000 up to several million depending on lender appetite. Exact amounts depend on the asset value, asset age, business turnover, trading history, credit profile and the finance product chosen. Start a Free Eligibility Check to see what you could borrow and which lenders are likely to help: Get a Free Eligibility Check.

Trust note: UK Business Loans connects UK construction businesses with trusted lenders and brokers. We do not lend and we do not provide regulated financial advice — we introduce you to finance partners for a free, no‑obligation eligibility check. Your details are shared securely and only with partners who can help.

Quick answer — typical borrowing ranges for construction equipment

Below are indicative ranges used across the equipment finance market in the UK. These are for guidance only — your exact borrowing capacity will be confirmed after a brief eligibility check.

• Small equipment or single machines (small diggers, compressors, small telehandlers): typically from £10,000 to £50,000.
• Medium packages (several machines or a small fleet): typically £50,000 to £500,000.
• Large fleets, heavy plant packages or specialist plant (mobile cranes, large excavators, plant hire fleets): often £500,000 up to several million — bespoke facilities, staged drawdowns or syndications may be used.

Want an immediate idea of what you could borrow? Get a Free Eligibility Check — it takes 2 minutes and won’t affect your credit score.

What affects how much you can borrow?

Lenders price and size facilities based on risk. The main factors that determine borrowing limits are:

1. Value and type of asset

• New assets usually attract higher loan-to-value (LTV) — often 70–100% of the purchase price for mainstream new plant.
• Used equipment LTVs fall with age — typical ranges 50–80% depending on condition and resale market.
• Specialist or bespoke plant can carry lower LTVs because resale markets are smaller.

2. Business size, turnover and contract pipeline

Lenders look for demonstrable trading and income to service repayments. Many specialist asset lenders will consider deals from established limited companies with annual turnover at or above modest thresholds; some partners will accept lower turnover for smaller ticket items, but expect higher rates or personal security.

3. Profitability and cash flow

Healthy margins and predictable cash flow improve borrowing capacity. For larger facilities lenders may ask for management accounts, cash flow forecasts and details of major contracts.

4. Credit profile and security

• Business and director credit histories influence size, pricing and whether personal guarantees are requested.
• Some lenders accept imperfect credit for equipment deals but limit term or increase cost.

5. Deposit, term and residuals

Higher deposits reduce the amount to finance. Products with balloon/residual payments lower monthly cost but can affect the lender’s underwriting and maximum advance.

6. Asset life, maintenance and resale value

Lenders assess expected life and residual value — well-maintained machines with strong second‑hand markets attract better LTVs.

Summary checklist (quick): asset type & age; VAT status; turnover & trading history; recent bank statements; contracts/orders; director credit status; deposit available.

Finance options for plant & construction equipment — typical borrowing per product

Different products suit different objectives: purchase, off‑balance treatment, short-term use or releasing capital from existing assets.

Hire Purchase (HP)

HP funds purchase; you typically own the asset after the final payment. Typical advance: 70–100% for new equipment; used assets lower. Terms usually 2–5 years for small plant, longer for larger items.

Finance Lease

Lender owns the asset; you pay rentals. Advance often covers most of the asset cost (80–100% for new). Useful if you want predictable costs or tax benefits; ownership options vary at the end of term.

Chattel Mortgage

Structured like HP but using a mortgage over the asset — commonly used for larger commercial deals. LTVs and terms similar to HP for comparable assets.

Sale & Leaseback / Asset Refinance

Sell owned plant to a funder and lease it back to release working capital. Typical release values often 50–70% of agreed asset value depending on age and condition; can convert large fleets into sizeable cash sums.

Operating Lease / Contract Hire

Shorter-term rentals with service packages. Borrowing is expressed as monthly commitments rather than an upfront loan. Ideal for fleets and short-life assets.

Specialist large-ticket finance

For multi-million-pound fleets or staged purchases tied to projects, bespoke facilities or syndication between lenders may be used. These are underwritten on company strength, contracts and asset schedules.

Across products the minimum booking size we typically handle is £10,000.

How lenders set the borrowing limit — underwriting explained

Underwriting combines asset and borrower assessment. Typical documentation and checks include:

• Asset invoices/specs, photos and proof of ownership or VAT status.
• Company accounts (preferably 2–3 years for larger deals), recent management accounts for growth businesses.
• Bank statements (often 3 months), details of major contracts or purchase orders.
• Director ID and credit checks if required; company credit reports for larger facilities.
• Valuations for used or specialist plant in some cases.

Affordability checks vary by lender — some use simple turnover tests for small HP deals; others use EBITDA or DSCR (debt service coverage ratio) for larger structured facilities.

Timescales: simple asset finance decisions can be made in hours to days once paperwork is supplied. Complex large-ticket or structured facilities will typically take several days to a few weeks.

If you want a rapid indication of likely lenders and limits, Start a Free Eligibility Check.

Example borrowing scenarios

These illustrations are indicative only.

Example 1 — Excavator for a construction contractor

Asset cost £25,000 (new). Possible funding: Hire Purchase or finance lease. LTV 80–90% for new equipment. Deposit £2,500 → finance £22,500. Typical term 3–5 years. Monthly repayment (HP) illustrative: £420–£660 depending on term and rate.

Example 2 — SME fleet and telehandlers

Package cost £180,000 (mixed new & near‑new). Package finance via asset finance house. LTV 70–85%, staged drawdowns to match delivery. Term 3–5 years. Lender will require accounts and recent bank statements.

Example 3 — Sale & leaseback to free capital

Existing plant book value £600,000. Sale & leaseback could release 50–70% (£300k–£420k) into working capital; lease rentals replace capital repayments and can be tax-efficient.

Illustrations are indicative; exact costs, LTVs and terms will be confirmed by lenders after assessment.

Typical lenders and market options

Who lends? A mix of high‑street banks, specialist asset finance houses, non‑bank lenders and broker panels. Choices depend on credit profile, asset type, deal size and speed required.

• Specialist asset finance houses — good for used plant and complex deals.
• Non‑bank lenders — often faster decisions and flexible underwriting for imperfect credit.
• Banks — competitive pricing for established businesses with strong accounts.
• Brokers — can access multiple panels and place bespoke or larger transactions.

For more on sector-focused options see our construction lending overview or specialist guidance on construction business loans.

How UK Business Loans helps — simple 4-step process

1. Complete a short enquiry (around 2 minutes) — tell us the asset type and amount.
2. We match you to lenders and brokers with appropriate appetite for your asset and business size.
3. Receive indicative quotes and lender contact — often within hours for simple deals.
4. Choose the best offer and complete the full application with the lender/broker.

No obligation. Submitting the enquiry does not affect your credit score. Ready to see tailored options? Get Quote Now — Free Eligibility Check.

FAQs

Next steps & final note

Ready to discover how much you could borrow for plant or construction equipment? Complete a quick enquiry and we’ll match you to the best lenders and brokers for your needs. It’s free and no obligation: Get a Free Eligibility Check.

Important: UK Business Loans is an introducer that connects businesses with lenders and brokers. We do not lend, and this page is general information only — not regulated financial advice. All figures are indicative and subject to lender assessment.

1. How much can I borrow for plant and construction equipment in the UK? — Most UK businesses can access equipment finance from around £10,000 up to several million depending on asset value, lender appetite and your turnover, credit and product choice (typical ranges: £10k–£50k, £50k–£500k, £500k+).
2. What types of equipment finance are available for construction businesses? — Common options include hire purchase, finance leases, chattel mortgages, sale & leaseback, operating leases and bespoke large‑ticket facilities, all available via our lender network.
3. Can I finance used plant and what loan‑to‑value (LTV) should I expect? — Yes; lenders commonly finance used plant with LTVs typically around 50–80% depending on age, condition and resale marketability.
4. How much deposit will lenders usually require for plant finance? — Deposits vary by product and asset but are often 0–30% for new equipment (some lenders offer 100% packages for qualifying borrowers) and higher for older or specialist plant.
5. How quickly can I get funded for equipment purchases? — Simple asset finance decisions can be made within 24–72 hours once paperwork is provided, while complex or large‑ticket facilities may take several days to weeks.
6. Will submitting an enquiry through UK Business Loans affect my credit score? — No — completing our free eligibility enquiry does not affect your credit score; individual lenders may perform credit checks only if you proceed to a formal application.
7. What documents do lenders typically ask for when underwriting plant finance? — Expect to provide asset invoices/specs, recent bank statements, company accounts or management accounts, director ID and credit checks, plus purchase orders or valuations for used plant.
8. Can businesses with limited trading history or imperfect credit still get equipment finance? — Yes — specialist non‑bank lenders and brokers often support start‑ups or businesses with imperfect credit, though they may charge higher rates or request additional security.
9. How much cash can sale & leaseback release from my existing plant fleet? — Sale & leaseback deals typically release around 50–70% of the agreed asset value, subject to asset age, condition and lender appetite.
10. How does UK Business Loans help me find the right lender for equipment finance? — We’re a free, no‑obligation introducer that matches your quick eligibility check to trusted UK lenders and brokers who specialise in your sector and asset type.