The business and affordability
Trading history, accounts, bank statements and existing commitments help the lender assess whether the rentals are affordable.
Equipment leasing for UK businesses
Spread the cost of business equipment through agreed rentals, from garage systems to manufacturing machinery and technology.
Share the equipment price and when you need it. We’ll explain the available terms.
Lease garage equipment, manufacturing machinery and business technology without tying up cash in ownership.
How business equipment leasing works
Pay agreed rentals to use the equipment. Your options at the end depend on the facility.
- Ownership
- The lender owns the equipment during the lease.
- First payment
- Usually an initial rental on delivery, subject to funder and supplier requirements.
- VAT
- Normally charged on each rental.
Adjust the amount, term and deposit for an illustrative monthly rental.
Discuss leasing with our teamWhat equipment leasing companies assess
A lender needs to understand the business, the equipment and the supplier before deciding whether the lease and proposed term are suitable.
The equipment and useful life
Age, condition, value, expected working life and resale market influence whether the asset and lease term are appropriate.
The supplier and itemised quote
A clear quote should identify the supplier, equipment, delivery, installation, software, service costs and VAT separately.
New and established businesses can apply, subject to credit criteria. Deposit, guarantee and information requirements vary by lender, equipment and application.
Garage equipment finance and leasing
Garage equipment finance can spread the cost of workshop equipment through agreed rentals. Match the term to how long you expect to use the equipment and its replacement cycle.
Vehicle lifts and workshop systems
Two-post and four-post lifts, MOT bays, brake testers, alignment systems and workshop extraction equipment.
Diagnostics and testing
Diagnostic platforms, calibration systems, emissions equipment and other technology used to inspect or repair vehicles.
Tyre and compressed air equipment
Tyre changers, wheel balancers, compressors and related workshop equipment supplied as a single purchase or package.
Provide an itemised supplier quote showing installation, delivery, software and service costs separately. Whether each cost can be included depends on the lender and agreement. Explore our garage equipment finance options or read the full workshop planning guide.
Manufacturing equipment leasing
Machinery leases can spread the cost of production assets through agreed rentals. Match the term to the expected working life, output and replacement plan.
Machining and fabrication
CNC machines, lathes, presses, laser cutters, welders and other equipment used to shape, cut or assemble materials.
Processing and packaging
Production lines, filling systems, conveyors, labelling equipment and packaging machinery for repeatable output.
Automation and robotics
Robotic systems, control equipment and integrated automation where the supplier can clearly define the hardware, software and installation.
Leasing of machinery can suit production assets that may be replaced or upgraded. Explore manufacturing equipment leasing and finance, or compare leasing with hire purchase if ownership is important.
Costs and conditions
End-of-term optionsThe agreement sets out what happens after the primary term.
Depending on the facility, options may include secondary rentals, return or sale of the equipment through an agreed route. Ownership does not transfer automatically.
We’ll explain the available options and any charges before you sign.
Rentals and taxVAT is normally spread across the rentals.
Rental payments may be deductible for tax purposes. The treatment depends on the lease and your business, so confirm it with your accountant.
Any deposit, advance rentals and fees will be set out in the offer.
How to apply
Choose the equipment
Send the supplier quote and tell us how long you expect to use the equipment.
Agree the lease
Review the rentals, first payment, fees and end-of-term options.
Arrange delivery
After approval and signed documents, we coordinate payment with the supplier.
What you’ll need
- Equipment description and supplier quote.
- Business details and trading history.
- Preferred term and any deposit.
The lender may request further information.
Automated approval is available for eligible applications through Capra Connect, subject to credit criteria and lender requirements. How decisions work
Compare finance options
| Comparison | Finance lease | Hire purchase | Buying outright |
|---|---|---|---|
| Who owns it at the end | The lender. End-of-term options depend on the agreement. | You, after the final payment and any option fee | You |
| Upfront cost | Usually an initial rental on delivery, subject to funder and supplier requirements. | Usually VAT, plus any agreed deposit. VAT deferral may be available. | Full price plus VAT |
| VAT | Spread across rentals | Normally upfront. Deferral may be available. | Payable upfront |
| Changing the equipment | Subject to the lender’s upgrade or settlement terms | Settle the existing agreement before selling or replacing it | Sell or replace it when you choose |
| Best suited to | Using equipment through agreed rentals | Long life assets you will keep | Businesses with surplus cash |
Start with these figures
Equipment you can lease
Equipment leases can cover coffee systems, garage equipment, manufacturing machinery and construction plant. Explore coffee machine finance, garage equipment finance, manufacturing equipment finance or construction equipment finance. Buying used plant? Read what lenders assess in our used construction equipment finance guide.
Equipment leasing FAQs
Do I own the equipment during the lease?
No. Legal ownership stays with the lender. You use the equipment under the lease, with end-of-term options set out in the agreement.
What happens at the end of an equipment lease?
Depending on the agreement, options may include secondary rentals, return or sale through an agreed route. Ownership does not transfer automatically. We’ll explain your options before you sign.
Is VAT paid upfront on a lease?
VAT is normally charged on each rental. Any initial payment and its VAT will be confirmed in the offer.
Can I lease used or refurbished equipment?
Potentially. Lenders assess the supplier, age, condition, value and remaining working life of the equipment. Share these details before committing to the purchase.
Is leasing available to new businesses?
New businesses can apply. Lenders may request a deposit, director guarantee or business plan where trading history is limited.
Can I upgrade the equipment mid term?
It may be possible through settlement or a new agreement. Available options and costs depend on the lender, agreement and equipment value.
How does equipment leasing differ from hire purchase?
The short version is ownership and VAT. Leasing keeps ownership with the lender and spreads VAT across rentals. Hire purchase is usually used when you want to own the asset at the end.
Will applying affect my credit score?
An initial conversation will not. If a formal lender search is needed, we explain the route first and only proceed with your agreement.
What garage equipment can I finance or lease?
Garage equipment finance may cover vehicle lifts, diagnostic systems, tyre changers, wheel balancers, compressors and other workshop equipment, subject to the supplier, equipment, business and lender.
Can machinery leases cover manufacturing equipment?
Potentially. Machinery leases can cover CNC machines, fabrication equipment, packaging lines, automation and other production assets. The leasing of machinery depends on the asset, supplier, business and lender.
What do equipment leasing companies assess?
Equipment leasing companies and lenders assess the business, affordability, supplier, equipment, deposit, proposed term and expected working life. A clear itemised quote helps them understand the purchase.
Discuss equipment leasing
Bring your equipment quote. We’ll talk through the rental term, payment timing and options at the end of the agreement.