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Generator Finance

Spread the cost of commercial generators from £5,000 to £250,000+ with flexible finance options. HP, lease, or refinance, compare rates from 40+ lenders.

Can you finance a generator?

Yes, generators 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 £5,000 to £250,000, and most deals are written over 12–72 months with a deposit of around 10–20%. Decisions typically take 24–48 hours. Used machines are financeable too, usually with a shorter term.

200+ UK lenders
2-minute application
No credit check to apply
FCA-regulated brokers

Typical Cost

£5k – £250k

Approval Speed

24–48 hours

Same-day for < £50k

Rates From

4.8% APR

What would a generator cost per month?

£40,000
10%
60 months
9%
£0

Your estimate

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

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

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Finance options

Hire Purchase (HP)

Rate
From 5.2% APR
Term
12–72 months
Deposit
10–20%
Ownership
Yours at the end
Best for
Businesses wanting to own the generator outright

Finance Lease

Rate
From 4.8% APR
Term
12–72 months
Deposit
None required
Ownership
Return or buy (balloon payment)
Best for
Tax-efficient, claim 100% of payments against profit

Operating Lease

Rate
From 5.5% APR
Term
24–60 months
Deposit
None required
Ownership
Return at end
Best for
Access latest generator technology. Off balance sheet.

Representative example

On a purchase price of £40,000: a 10% deposit of £4,000, then 48 monthly payments of £844 at 5.9% APR representative (fixed). Total amount payable £44,512, including the deposit. The rate you are offered depends on your business and the asset.

What buyers actually specify

Guide prices for sizing a finance agreement, not quotes. Manufacturers in this market mostly price on application, so where a current UK list price could not be confirmed the row describes a specification class rather than naming a model. Your supplier quote is what the agreement is written against.

Machine or specification Guide price Type
Caterpillar DE200E0 200kVA £30,000 – £55,000 Diesel Generator
Cummins C150D5 150kVA £25,000 – £45,000 Diesel Generator
SDMO J130K 130kVA £18,000 – £30,000 Diesel Generator
Atlas Copco QAS 500 500kVA £60,000 – £100,000 Mobile Generator

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Tax benefits

Generators qualify for Annual Investment Allowance (AIA), letting you deduct the full cost from taxable profits in year one, up to £1,000,000. HP allows capital allowances. Lease payments are fully deductible.

Market context

Generators are bought by construction sites, events companies, data centres and any business needing backup or off-grid power, from a small portable unit for a contractor to a large standby generator protecting a critical site. Finance suits buyers where the generator supports a specific contract or a standing operational need, letting the cost be matched to the income or risk it protects rather than paid upfront. Replacement is usually driven by rising hours and maintenance cost on an older engine, or by tightening emissions requirements, rather than sudden failure. A solid used market exists, particularly for larger standby units, which supports residual values.

Bad credit?

Several of our 200+ lenders specialise in businesses with imperfect credit histories. You may need a larger deposit or personal guarantee, but options exist. Checking your options here does not affect your credit score, because we do not run a credit search to match you. A lender will run their own checks only if you decide to apply.

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Frequently asked questions

Can I finance a used generator?
Yes. Most lenders will finance a used generator up to around 10 years old, and well-maintained diesel generators often have a long service life beyond that if hours run have been moderate. Independent inspection and full service records are generally required to support a used application, since the lender needs some assurance the engine and alternator have been properly maintained rather than just relying on the seller's description. Larger standby units, which see a solid used market, tend to be easier to finance used than smaller portable generators, partly because the resale market gives the lender more confidence in the asset's value if it were ever repossessed.
What deposit do I need for generator finance?
For hire purchase, most lenders ask for a 10 to 20% deposit, while finance lease and operating lease agreements are commonly available with no deposit required. A larger deposit on a hire purchase agreement lowers the monthly repayment and can help secure a better rate, which is worth factoring in given generators can range from a small £5,000 portable unit up to a £250,000 large standby installation. Events companies and contractors financing a generator against a specific contract sometimes prefer a lower deposit to preserve cash for other project costs, while a business protecting a critical site long-term may put down more to reduce ongoing payments.
How quickly can I get generator finance?
Most generator finance applications are approved within 24 to 48 hours once the supplier quote and business details are submitted. For deals under £50,000, such as a portable or smaller standby unit, same-day approval is common. Larger installations, including a big standby generator protecting a critical site, take longer to review because the lender is assessing a bigger facility and often wants installation, switchgear, and commissioning costs itemised alongside the generator itself. Submitting the full project quote in one go, rather than the generator and installation as separate items, tends to keep the process quicker.
Can I finance installation and commissioning alongside the generator?
Yes. Installation, the fuel tank, switchgear and commissioning can all be included in the finance agreement provided they're itemised on the supplier's invoice alongside the generator itself, rather than treated as a separate cost you pay upfront. This matters because commissioning and switchgear can represent a meaningful share of the total project cost on a larger standby installation, and financing the whole package in one facility keeps a single repayment schedule rather than splitting the cost across different payment methods. It's worth agreeing the full scope with your supplier and getting it itemised before you apply, so the lender can assess the complete project rather than just the generator on its own.
Can a new business or one with a poor credit history get generator finance?
It's possible, though the terms will usually be less favourable than for an established business with a clean credit record. A newer business, such as an events company in its first year or two of trading, may be asked for a personal guarantee from a director, a larger deposit, or a shorter repayment term to offset the lender's risk. A poor credit history doesn't automatically rule out an application either, since some lenders specialise in this area, but expect a higher rate and closer scrutiny of the contract or site the generator will be used for. Being upfront about trading history and credit position when applying tends to produce a quicker, more accurate quote.
What happens at the end of a generator finance agreement?
It depends on which agreement you chose. Under hire purchase, the generator is yours outright once the final payment is made. Under a finance lease, you typically have the option to make a final balloon payment to own the generator or return it, depending on how the agreement was set up. Under an operating lease, you simply hand the generator back at the end of the term, which suits businesses wanting to access newer, more efficient generator technology every few years rather than keeping the same unit for its full working life. Deciding which outcome you want before signing affects the monthly cost, so it's worth discussing with your broker upfront.

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Guides and resources

What Is Asset Finance? HP vs Leasing Operating vs Finance Lease Best Asset Finance Companies Close Brothers Review Lombard Review

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