Compressor Finance

Q: Can I finance a used compressor?

Yes, most lenders finance used compressors up to around 8 years old, and well-maintained rotary screw compressors in particular have long service lives thanks to relatively simple, well-understood mechanics and wide parts availability. Service records and an independent inspection may be required for older units, especially where the compressor feeds critical production equipment, since unexpected downtime on a factory air ring main can affect far more than the compressor itself. A unit with documented oil changes and filter servicing will generally secure better terms than one without.

Q: What deposit do I need for compressor finance?

For hire purchase, most lenders ask for a 10-20% deposit, while finance leases and operating leases can often be arranged with no deposit at all. A larger deposit reduces the monthly payment, which is worth weighing against the fact that a compressor is usually installed alongside other capital works such as ducting, dryers and pipework, so keeping cash free for the rest of the installation often matters as much as minimising the finance cost on the compressor itself.

Q: How quickly can I get compressor finance?

Most applications are approved within 24 hours, and same-day approval is common for deals under £30,000, which covers most single-unit purchases for a workshop or small factory. A larger screw compressor feeding a factory-wide air ring main, or one bundled with dryers, filters and pipework as a full installation, takes a little longer to review since the lender needs to assess the complete project rather than the compressor alone.

Q: Can I include air treatment equipment?

Yes, provided they appear on the supplier's invoice alongside the compressor itself, most lenders fund dryers, filters, receivers and piping as part of the same agreement rather than requiring them to be paid separately. This is worth doing even for a modest single-compressor installation, since air treatment equipment protects downstream tools and machinery from moisture and contamination, and keeping it on the same finance agreement as the compressor avoids a separate purchase and payment schedule to track.

Q: What happens at the end of a compressor finance agreement?

Hire purchase transfers full ownership of the compressor once the agreement is paid off, which suits a workshop or manufacturer wanting to own the equipment outright. A finance lease usually offers a balloon payment to take ownership, continued rental, or handover to the funder, while an operating lease is return-only, which suits a business wanting to upgrade to the latest energy-efficient models as they become available rather than run the original compressor to the end of its working life. Rising running and maintenance costs, more than sudden failure, usually drive replacement.

Q: Can a new manufacturing or workshop business finance a compressor?

Yes, though a business under two years of trading is more likely to be asked for a personal guarantee, a higher deposit, or evidence such as a business plan and confirmed orders to support the application. Because compressors have a steady used market and wide parts and service availability across most brands, lenders are generally comfortable financing even a newer workshop or manufacturer provided the compressor itself, and the installation it supports, are clearly specified in the application.

Spread the cost of industrial compressors from £3,000 to £150,000+ with flexible finance options. HP, lease, or refinance

Can you finance a compressor?

Yes, compressors are financed as a standard asset purchase, usually on hire purchase or a lease, with the machine itself acting as the security. UK prices typically run £3,000 to £150,000, and most deals are written over 12–60 months with a deposit of around 10–20%. Decisions typically take 24 hours. Used machines are financeable too, usually with a shorter term.

Typical Cost

£3k – £150k

Approval Speed

24 hours

Same-day for < £30k

Rates From

5.0% APR

What would a compressor cost per month?

Compressor price (ex VAT) £25,000

Deposit 10%

Agreement term 60 months

Annual interest rate 9%

Balloon payment £0

Your estimate

Indicative only. Not a quote and not an offer of finance.

Pre-filled with a typical compressor price. Indicative only, not a quote.

Finance options

Hire Purchase (HP)

Rate: From 5.5% APR
Term: 12–60 months
Deposit: 10–20%
Ownership: Yours at the end
Best for: Manufacturers wanting to own the compressor outright

Finance Lease

Rate: From 5.0% APR
Term: 12–60 months
Deposit: None required
Ownership: Return or buy (balloon payment)
Best for: Tax-efficient, claim 100% of payments against profit

Operating Lease

Rate: From 5.8% APR
Term: 24–48 months
Deposit: None required
Ownership: Return at end
Best for: Upgrade to latest energy-efficient models. Off balance sheet.

Representative example

On a purchase price of £25,000: a 10% deposit of £2,500, then 48 monthly payments of £527 at 5.9% APR representative (fixed). Total amount payable £27,796, including the deposit. The rate you are offered depends on your business and the asset.

Machine or specification	Guide price	Type
Atlas Copco GA 30+	£15,000 – £25,000	Rotary Screw 30kW
CompAir L45RS	£12,000 – £22,000	Rotary Screw 45kW
Kaeser CSD 75	£20,000 – £40,000	Rotary Screw 75kW
Ingersoll Rand R-Series 37	£10,000 – £18,000	Rotary Screw 37kW

Tax benefits

Compressors qualify for Annual Investment Allowance (AIA), letting you deduct the full cost from taxable profits in year one, up to £1,000,000. Lease payments are deductible against profits. A compressor plumbed into a fixed ringmain is still moveable plant, but the pipework installed with it may not be, so itemise the supplier's quote before claiming.

Bad credit?

Some specialist lenders consider businesses with imperfect credit histories. You may need a larger deposit or personal guarantee, but options may be available. Fundably may use a soft credit check for matching, which does not affect your credit score. A hard check may happen if you choose to proceed with a lender.

Frequently asked questions

Can I finance a used compressor?

Yes, most lenders finance used compressors up to around 8 years old, and well-maintained rotary screw compressors in particular have long service lives thanks to relatively simple, well-understood mechanics and wide parts availability. Service records and an independent inspection may be required for older units, especially where the compressor feeds critical production equipment, since unexpected downtime on a factory air ring main can affect far more than the compressor itself. A unit with documented oil changes and filter servicing will generally secure better terms than one without.

What deposit do I need for compressor finance?

For hire purchase, most lenders ask for a 10-20% deposit, while finance leases and operating leases can often be arranged with no deposit at all. A larger deposit reduces the monthly payment, which is worth weighing against the fact that a compressor is usually installed alongside other capital works such as ducting, dryers and pipework, so keeping cash free for the rest of the installation often matters as much as minimising the finance cost on the compressor itself.

How quickly can I get compressor finance?

Most applications are approved within 24 hours, and same-day approval is common for deals under £30,000, which covers most single-unit purchases for a workshop or small factory. A larger screw compressor feeding a factory-wide air ring main, or one bundled with dryers, filters and pipework as a full installation, takes a little longer to review since the lender needs to assess the complete project rather than the compressor alone.

Can I include air treatment equipment?

Yes, provided they appear on the supplier's invoice alongside the compressor itself, most lenders fund dryers, filters, receivers and piping as part of the same agreement rather than requiring them to be paid separately. This is worth doing even for a modest single-compressor installation, since air treatment equipment protects downstream tools and machinery from moisture and contamination, and keeping it on the same finance agreement as the compressor avoids a separate purchase and payment schedule to track.

What happens at the end of a compressor finance agreement?

Hire purchase transfers full ownership of the compressor once the agreement is paid off, which suits a workshop or manufacturer wanting to own the equipment outright. A finance lease usually offers a balloon payment to take ownership, continued rental, or handover to the funder, while an operating lease is return-only, which suits a business wanting to upgrade to the latest energy-efficient models as they become available rather than run the original compressor to the end of its working life. Rising running and maintenance costs, more than sudden failure, usually drive replacement.

Can a new manufacturing or workshop business finance a compressor?

Yes, though a business under two years of trading is more likely to be asked for a personal guarantee, a higher deposit, or evidence such as a business plan and confirmed orders to support the application. Because compressors have a steady used market and wide parts and service availability across most brands, lenders are generally comfortable financing even a newer workshop or manufacturer provided the compressor itself, and the installation it supports, are clearly specified in the application.

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Guides and resources

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