How much trading history do I need to get asset finance as a startup?

Some specialist asset finance lenders will consider applications from businesses with as little as 3–6 months of trading history, particularly for lower-value assets (under £30,000) where the asset security is strong. For larger assets or newer businesses, a business plan, personal financial statements, and evidence of forward orders or contracts can supplement the lack of trading accounts. Some lenders will assess a startup purely on the directors' personal credit history and the asset value.

Will I need a personal guarantee for startup asset finance?

Almost certainly yes. Personal guarantees (PGs) are standard for startup asset finance applications where the business has limited credit history. A PG means the director becomes personally liable if the business defaults. The guarantee is typically for the full outstanding finance amount. It is essential to take independent legal advice before signing a PG and to understand exactly what you are guaranteeing.

What deposit is needed for startup asset finance?

Most asset finance lenders require a deposit of 10–20% of the asset value for established businesses. Startups are typically asked for 20–30% — sometimes more for high-value or niche assets. The deposit reduces the lender's exposure and demonstrates commitment. Some lenders will accept a larger deposit in lieu of trading history, so if you can put 30–40% down, your chances of approval increase significantly.

What types of assets can startups finance?

Startups can typically finance equipment, machinery, commercial vehicles, technology hardware, and agricultural equipment. Assets with strong residual values and a clear secondary market — such as commercial vans, tractors, or manufacturing equipment — are most favourably received. Bespoke, one-off, or highly specialised equipment with low resale value is harder to finance for startups because the lender has less security in the event of default.

Is hire purchase or leasing better for a startup?

Hire purchase (HP) leads to ownership at the end of the agreement and builds an asset on the balance sheet, which can be useful for future financing. Finance leasing keeps the asset off-balance sheet (under some accounting standards) and usually has lower monthly payments, but you don't own the asset at the end. For startups that need to preserve cash, leasing often provides lower initial costs. For businesses where asset ownership matters — for example, to use as future security — HP is usually preferable.

Can Startups Get Asset Finance? What You Need to Know

Why Asset Finance Works for Startups

Unsecured business loans are difficult for startups to access because lenders require trading history to assess creditworthiness. Asset finance is different. The financed asset itself acts as security — the lender can repossess and sell it if payments stop. This shifts the risk dynamic significantly, making asset finance one of the most accessible forms of business funding for new companies.

A startup importing a new £80,000 CNC machine, a van operator buying its first three vehicles, or a catering company purchasing professional kitchen equipment — all of these can access finance from day one of trading if the asset value stacks up.

The Main Asset Finance Products for Startups

Hire Purchase

You pay a deposit (typically 10–30%), then fixed monthly payments over an agreed term (usually 2–5 years). At the end, you own the asset outright. The asset is on your balance sheet from day one, and you can claim capital allowances.

Best for: Startups that want to own equipment and are comfortable with an asset on their balance sheet.

Finance Lease

The lender buys the asset and leases it to you. You pay monthly rentals for the agreed term. At the end, you can typically extend the lease, return the asset, or sell it on behalf of the lender and take a share of the proceeds (usually 95–99%). You never technically own the asset.

Best for: Startups that want lower monthly payments and don’t need ownership.

Operating Lease

Similar to finance lease, but the lender retains the residual risk. Payments are lower because the lender is subsidising them with the expected resale value. Common in technology and vehicle fleets.

Best for: Assets that depreciate or become obsolete quickly (technology, specialist vehicles).

Asset Refinance

If you already own an asset outright — a vehicle, piece of machinery, or equipment — you can refinance it to release capital. This is occasionally possible for startups if a director’s personal assets are involved, though it’s more commonly used by established businesses.

Realistic Expectations for Startup Asset Finance

It’s important to set expectations carefully. As a startup, you should expect:

Higher deposit: Where an established business might be offered 90% finance, a startup is more likely to be offered 70–80% — meaning a 20–30% deposit.

Personal guarantee required: This is non-negotiable with most lenders for startups. Ensure you understand the scope before signing.

Higher rates: Startup asset finance typically prices at 6–12% per annum (equivalent APR), compared to 4–8% for established businesses with strong accounts. The additional rate compensates for the lack of trading history.

Fewer lenders: High-street banks rarely offer asset finance to pre-revenue or very early-stage businesses. Specialist asset finance lenders and brokers accessing the wholesale market are your best route.

Typical Cost Example

Scenario: 12-month-old catering startup purchasing a professional combi oven costing £22,000.

Item	Detail
Asset value	£22,000
Deposit (25%)	£5,500
Amount financed	£16,500
Term	36 months
Rate (APR)	9.5%
Monthly payment	£526
Total repayment	£18,936
Total cost of finance	£2,436

The business owns the oven outright after 36 months. The monthly payment of £526 is significantly lower than the cash purchase price spread over the same period, preserving working capital during the growth phase.

How to Improve Your Chances of Approval

Build a clear business plan. For startups without accounts, a well-prepared business plan with realistic revenue projections and evidence of customer pipeline significantly improves your chances with specialist lenders.

Demonstrate personal financial strength. Lenders will look at the directors’ personal credit history and financial position when assessing startup applications. Clean personal credit and demonstrable personal assets help.

Offer a larger deposit. Going from 20% to 30% deposit can unlock approval where it might otherwise be declined — and reduces your monthly payment.

Start with smaller assets. A first successful agreement — even for a £10,000 asset — builds a credit profile with the lender, making subsequent and larger applications easier.

Use a specialist asset finance broker. Not all lenders accept startups, and the ones that do have varying appetites by asset type, sector, and business age. A broker with access to specialist lenders (such as Close Brothers Asset Finance, Shawbrook, or Aldermore) will match your application to the right source from the outset.

Can a startup get asset finance?

In short