What are the best alternatives to Lombard for asset finance?

Why consider alternatives to Lombard?

Lombard has been financing assets for UK businesses since 1861 and is now part of NatWest Group. It writes deals from £3,000 to £50 million at 4% to 15% per annum with a representative 8.5% APR, and it is one of the very few providers that can handle a single asset purchase running into the tens of millions.

That scale comes with bank underwriting attached. Lombard asks for 24 months or more of trading, £100,000 of annual turnover, and a good to excellent credit profile, with full business financials on larger deals. Decisions take 2 to 5 working days and larger cases needing credit committee sign-off can run to 1 to 2 weeks. Its own record notes it is less suitable for small ticket deals under £10,000 and less flexible on terms than independent specialists.

So the exits are predictable. You are 14 months into trading. You have a CCJ from two years ago. You want a £4,000 EPOS system, not a £4 million crane. Or the supplier will hold the machine until Friday and Lombard’s answer is due Tuesday week. The seven providers below each solve one of those specific problems.

Top Lombard alternatives

1. Aldermore Bank, best for same-day decisions on half the trading history

Aldermore is the closest thing here to a like-for-like swap that removes Lombard’s two main frictions at once. It is a fully licensed bank with FSCS deposit protection, so the institutional backing is comparable, but it requires 12 months of trading rather than 24 and gives same-day decisions on asset finance up to £250,000 rather than taking 2 to 5 working days.

Rates and amounts: 4.5% to 20% per annum depending on product, asset type and credit profile; £2,000 to £10 million.

Eligibility: 12 or more months of trading for most products; £100,000 turnover for most products, with lower thresholds on some asset finance.

Pros: Same-day decisions on asset finance up to £250,000 and 3 to 5 days for larger deals; a £2,000 minimum against Lombard’s £3,000; more flexible than high street banks on complex business profiles; asset finance, invoice finance, commercial mortgages and business loans from one bank; authorised by the PRA and regulated by the FCA and PRA under reference 204503.

Cons: Rates are not the most competitive for prime borrowers against mainstream banks, and the published band tops out higher than Lombard’s; 12 months of trading still excludes startups; part of a large banking group, so less nimble on bespoke deals than an independent.

Best for: Businesses 1 to 2 years into trading that want bank-grade backing without Lombard’s 24 month rule, and anyone who needs a same-day answer under £250,000.

2. Novuna Business Finance, best for small ticket and dealer-led purchases

Novuna, formerly Hitachi Capital, is the provider to approach when the asset costs £1,000 rather than £100,000, or when you are buying through a dealer or manufacturer who already has Novuna finance at the counter. Its minimum deal is £1,000 against Lombard’s £3,000, and it decides same-day on standard deals up to £100,000.

Rates and amounts: 4% to 18% per annum depending on asset type, term and credit profile; £1,000 to £5 million.

Eligibility: 3 or more years of trading; £50,000 turnover for smaller ticket deals, £250,000 for larger facilities.

Pros: A £1,000 minimum, the joint lowest here; same-day decisions on standard deals up to £100,000; very wide asset coverage including vehicles, technology and industrial equipment; manufacturer and dealer partnerships put finance at the point of purchase; £50,000 turnover on smaller deals is half Lombard’s threshold; Mitsubishi HC Capital UK PLC is FCA authorised under reference 704348.

Cons: 3 or more years of trading is a stricter requirement than Lombard’s 24 months, so this fixes the deal size problem but not the young business problem; less flexible on adverse credit than specialist providers; primarily accessed through the dealer or manufacturer channel rather than directly.

Best for: Established businesses buying standard vehicles, IT or equipment through a dealer, particularly for deals too small for Lombard to prioritise.

3. Shire Leasing, best for startups and adverse credit

This is the direct answer to Lombard’s good-to-excellent credit requirement. Shire operates a multi-funder broker model rather than lending from a single balance sheet, so a case that fails one funder’s criteria can be placed with another. It requires 3 or more months of trading, publishes no minimum turnover, and states it accepts adverse credit and startups through a specialist funder panel.

Rates and amounts: 5% to 25% per annum depending on asset, funder and credit profile, with specialist funders potentially higher; £1,000 to £1 million.

Eligibility: 3 or more months of trading, with startups considered via the specialist funder panel; no minimum turnover.

Pros: By far the lowest entry bar here at 3 months of trading and no turnover minimum; adverse credit and startups accepted through the funder panel; same-day decisions on standard deals and 24 to 48 hours on complex cases; strong expertise in technology, IT, office equipment and software; independent rather than bank-owned, so not limited to one funder’s criteria; a £1,000 minimum deal size.

Cons: We make no claim about Shire Leasing’s regulatory status, because our lender record for Shire has not been through source verification, so check the FCA Register at register.fca.org.uk yourself before proceeding. The end funder’s terms may differ from the initial indicative rate; the £1 million maximum is a fraction of Lombard’s £50 million; the rate band tops out at 25% per annum, the highest here; soft asset focus makes it less suited to large plant or vehicle fleets.

Best for: Young businesses and those with credit history that Lombard’s underwriting will not accept, particularly for IT and office equipment.

4. Close Brothers, best for sector specialism at mid-market scale

Close Brothers is the other bank on this list with genuine heritage, lending since 1878, and it competes with Lombard on expertise rather than on criteria. Its differentiator is specialist sector teams and the ability to put invoice finance and business loans alongside asset finance in one relationship, which Lombard does not offer.

Rates and amounts: 5% to 18% per annum; £10,000 to £5 million.

Eligibility: 24 or more months of trading; £250,000 annual turnover.

Pros: A FTSE 250 bank with over 145 years of lending history; specialist sector teams with deep industry expertise; asset finance, invoice finance and business loans from one lender; facility sizes to £5 million; authorised by the PRA and regulated by the FCA and PRA under reference 124750.

Cons: The £250,000 turnover requirement is two and a half times Lombard’s £100,000, so this is a step up in eligibility, not a relaxation; the same 24 month trading requirement; 3 to 5 working days is no faster than Lombard; a £10,000 minimum deal.

Best for: Established mid-market businesses that meet Lombard’s criteria comfortably but want sector-specific underwriting and invoice finance in the same conversation.

5. White Oak UK, best for the fastest decision

Where Lombard takes 2 to 5 working days, White Oak UK reports an average loan decision turnaround of around 4 hours according to its own figures. It also spans term loans, asset-based lending, invoice factoring, trade finance and equipment finance, so a business funding several things at once can do it in one place.

Rates and amounts: Priced per deal with no public rate card; £5,000 to £500,000.

Eligibility: Not publicly stated; assessed as part of underwriting.

Pros: An average decision turnaround of around 4 hours per the lender’s own figures, the fastest on this list; a broad product range spanning term loans, asset-based lending, invoice factoring, trade finance and equipment finance; a 70% repeat customer rate reported by the lender; backed by White Oak Global Advisors, a large US institutional asset manager.

Cons: No public rate card, so you cannot compare cost before applying; no published minimum turnover or trading history, so eligibility is unclear upfront; the lender trades as White Oak UK while the regulated entities are registered as LDF, which makes it harder to check who you are actually borrowing from; LDF Operations Limited is FCA authorised as a credit broker and lender under reference 630633, but White Oak’s own site states that where White Oak UK itself acts as lender, that specific product is not FCA regulated; a £500,000 maximum.

Best for: Businesses under a supplier deadline where a four hour answer is worth more than a published rate card.

6. Praetura Asset Finance, best for refinancing assets you already own

Lombard finances the purchase of an asset. Praetura’s product set includes asset refinance, which releases cash from equipment you already own and have already paid for. That is a different use of the balance sheet, and it is the reason to put Praetura on the list. Its group also runs a sister invoice finance business, useful if you need two funding types at once.

Rates and amounts: Priced per deal with no public rate card; £5,000 to £500,000.

Eligibility: Not publicly stated; assessed as part of underwriting.

Pros: Hire purchase, finance lease and asset refinance in a focused product set; part of a group with sister invoice finance and venture capital businesses; a direct enquiry route through its own regional office in Blackburn; FCA authorised under firm reference number 737408.

Cons: No public rate card, so pricing is only known at quote stage; no published minimum turnover or trading history, so eligibility is unclear upfront; a smaller, more regionally focused lender than a national bank; a £500,000 maximum against Lombard’s £50 million.

Best for: SMEs wanting to refinance owned assets to release working capital, and those in the North West who value a regional relationship over a national brand.

7. Propel Finance, best for green assets and point-of-sale finance

Propel’s differentiator against Lombard is the green asset finance line and PropelPay, its embedded finance option for point-of-sale asset purchases. If you are buying electric vehicles, solar or other low-carbon equipment, or you want finance offered at the checkout rather than arranged separately, this is the specialist.

Rates and amounts: Priced per deal with no public rate card; £5,000 to £500,000.

Eligibility: Not publicly stated; assessed as part of underwriting.

Pros: Around 30 years of trading history under its current and predecessor Henry Howard Finance name; a broad range covering hire purchase, finance lease, vehicle finance and green asset finance; PropelPay embedded finance for point-of-sale asset purchases; recognised as the fastest-growing UK asset finance lender in 2022 and 2023; Propel Finance Plc is FCA authorised under firm reference number 689877 and Propel Finance No. 1 Limited under 751977.

Cons: No public rate card, so pricing is only confirmed per deal; no published minimum turnover or trading history; two FCA-authorised entities make the regulatory picture less straightforward than a single-entity lender, so check which one is on your agreement; a £500,000 maximum.

Best for: Businesses financing low-carbon or green assets, and suppliers or buyers who want finance available at the point of sale.

Comparison table

How to choose the right alternative

Choose Aldermore Bank if you are 12 to 24 months into trading and want bank-grade backing with a same-day answer under £250,000.

Choose Novuna Business Finance if the asset costs between £1,000 and £100,000 and you are buying through a dealer, and you have three years of accounts.

Choose Shire Leasing if 24 months of trading or a clean credit file is what Lombard declined you on, and the deal is under £1 million.

Choose Close Brothers if you clear Lombard’s criteria easily and want sector-specialist underwriting plus invoice finance from the same lender.

Choose White Oak UK if a supplier deadline means four hours matters more than a published rate.

Choose Praetura Asset Finance if you want to refinance assets you already own rather than fund a new purchase.

Choose Propel Finance if the assets are green or low-carbon, or you want finance at the point of sale.

Three of these seven, White Oak, Praetura and Propel, publish no rate card at all, which is normal in asset finance but means you cannot compare them until you hold written quotes. Ask every provider for the total payable over the full term including any documentation, option-to-purchase and end-of-agreement fees, not just the monthly payment, and verify each firm on the FCA Register at register.fca.org.uk.