Telehandler Finance

Q: Can I finance a used telehandler?

Yes, used telehandlers can be financed, supported by a strong, well-established used market that keeps residual values solid. Lenders will want to see the machine's hours run and the condition of the hydraulics and boom, since rising wear costs on an older machine are the main thing that drives replacement. A machine bought through an established plant dealer with service records is generally easier to finance than a private sale with no history.

Q: What deposit do I need?

Hire purchase typically asks for a deposit of around 10 to 20% of the machine's cost, with the balance spread over the agreed term and ownership passing to you at the end. A finance lease or operating lease usually needs no deposit, since the lender's security is the machine itself, which some contractors prefer so repayments can be matched to the contracts the telehandler is servicing. The deposit level also depends on whether the machine is new or used and your business's trading history.

Q: How quickly can I get telehandler finance?

Most telehandler finance is approved within 24 to 48 hours once the lender has your application, the machine or dealer quote, and basic company details such as recent accounts or bank statements. A used machine from an established dealer tends to move fastest through approval, while a bespoke new specification can take slightly longer as the lender reviews the full quote. Having your paperwork ready before applying is the main thing that keeps the process quick.

Q: Do I need to have been trading for a minimum period?

Most lenders prefer at least 12 to 24 months of trading history and filed accounts, but newer construction, house-building or plant hire businesses can still get finance, usually with a larger deposit, a personal guarantee from a director, or a shorter term to offset the shorter track record. Lenders will also look at any contracts already secured for the machine, since a telehandler needs to be earning from the day it arrives on site to support the repayments.

Q: Is VAT charged on telehandler finance in the same way as an outright purchase?

If your business is VAT registered, VAT is generally charged in a similar way to an outright purchase, though when it falls due depends on the finance structure. Hire purchase treats the machine as a purchase from the outset, so VAT is typically due upfront and usually reclaimable on your next return, while a finance lease charges VAT on each rental payment as it falls due instead. It is worth confirming the exact treatment with your accountant before choosing between the two structures.

Q: What happens if I sell or part-exchange the telehandler before the agreement ends?

The telehandler remains the lender's security until the agreement is settled, so it cannot be sold or part-exchanged without first clearing the outstanding balance, usually done from the sale or part-exchange proceeds. Most lenders will provide a settlement figure on request, and if you are upgrading to a newer machine it is common to roll any shortfall or surplus into the new agreement. It is worth asking your broker about early settlement costs before committing if you expect to change machines within a few years.

Spread the cost of telehandlers from £25,000 to £150,000+ with flexible finance options. HP, lease, or refinance

Can you finance a telehandler?

Yes, telehandlers 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 £25,000 to £150,000, 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.

Typical Cost

£25k – £150k

Approval Speed

24–48 hours

Same-day for < £75k

Rates From

4.6% APR

What would a telehandler cost per month?

Telehandler price (ex VAT) £65,000

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 telehandler price. Indicative only, not a quote.

Finance options

Hire Purchase (HP)

Rate: From 5.0% APR
Term: 12–72 months
Deposit: 10–20%
Ownership: Yours at the end
Best for: Businesses wanting to own the telehandler outright

Finance Lease

Rate: From 4.6% 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 5.3% APR
Term: 24–60 months
Deposit: None required
Ownership: Return at end
Best for: Always have modern, productive machines. Off balance sheet.

Representative example

On a purchase price of £65,000: a 10% deposit of £6,500, then 48 monthly payments of £1,371 at 5.9% APR representative (fixed). Total amount payable £72,308, including the deposit. The rate you are offered depends on your business and the asset.

Machine or specification	Guide price	Type
JCB 535-95	£55,000 – £80,000	Construction Telehandler
Manitou MT 1440	£65,000 – £95,000	Construction Telehandler
Merlo P40.17	£70,000 – £100,000	High-Reach Telehandler
JCB 531-70	£45,000 – £65,000	Compact Telehandler

Tax benefits

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

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 telehandler?

Yes, used telehandlers can be financed, supported by a strong, well-established used market that keeps residual values solid. Lenders will want to see the machine's hours run and the condition of the hydraulics and boom, since rising wear costs on an older machine are the main thing that drives replacement. A machine bought through an established plant dealer with service records is generally easier to finance than a private sale with no history.

What deposit do I need?

Hire purchase typically asks for a deposit of around 10 to 20% of the machine's cost, with the balance spread over the agreed term and ownership passing to you at the end. A finance lease or operating lease usually needs no deposit, since the lender's security is the machine itself, which some contractors prefer so repayments can be matched to the contracts the telehandler is servicing. The deposit level also depends on whether the machine is new or used and your business's trading history.

How quickly can I get telehandler finance?

Most telehandler finance is approved within 24 to 48 hours once the lender has your application, the machine or dealer quote, and basic company details such as recent accounts or bank statements. A used machine from an established dealer tends to move fastest through approval, while a bespoke new specification can take slightly longer as the lender reviews the full quote. Having your paperwork ready before applying is the main thing that keeps the process quick.

Do I need to have been trading for a minimum period?

Most lenders prefer at least 12 to 24 months of trading history and filed accounts, but newer construction, house-building or plant hire businesses can still get finance, usually with a larger deposit, a personal guarantee from a director, or a shorter term to offset the shorter track record. Lenders will also look at any contracts already secured for the machine, since a telehandler needs to be earning from the day it arrives on site to support the repayments.

Is VAT charged on telehandler finance in the same way as an outright purchase?

If your business is VAT registered, VAT is generally charged in a similar way to an outright purchase, though when it falls due depends on the finance structure. Hire purchase treats the machine as a purchase from the outset, so VAT is typically due upfront and usually reclaimable on your next return, while a finance lease charges VAT on each rental payment as it falls due instead. It is worth confirming the exact treatment with your accountant before choosing between the two structures.

What happens if I sell or part-exchange the telehandler before the agreement ends?

The telehandler remains the lender's security until the agreement is settled, so it cannot be sold or part-exchanged without first clearing the outstanding balance, usually done from the sale or part-exchange proceeds. Most lenders will provide a settlement figure on request, and if you are upgrading to a newer machine it is common to roll any shortfall or surplus into the new agreement. It is worth asking your broker about early settlement costs before committing if you expect to change machines within a few years.

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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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For UK limited companies with at least 3 months’ trading and monthly revenue.