The UK excavator finance market sits in a relatively settled rate environment in October 2026. Bank of England base rate movements over the past 18 months have fed through into asset finance pricing, with the independent lender market broadly offering rates from 4% to 18% APR depending on credit profile and lender. Manufacturer captives continue to run periodic promotional rates that can undercut the independent market on new machines - but only for buyers who qualify and only during promotional windows.
This guide covers all 13 active lenders we regularly place excavator business with, ranked and explained. It's designed to help you identify which lender is right for your specific situation - not just who has the lowest headline rate.
Rate Range Overview - All Lenders
| Lender | Rate range (APR) | Min finance | Max finance | Who it suits |
|---|---|---|---|---|
| Lombard (NatWest) | 4% – 11.5% | £25,000 | £10m+ | Strong limited companies, large deals |
| Novuna Business Finance | 4.5% – 12.5% | £5,000 | £2,000,000 | Digital-first, new assets, established businesses |
| Close Brothers | 4.5% – 12% | £10,000 | £5m+ | Sole traders, new-to-plant, used/older plant |
| Shawbrook Bank | 5% – 13% | £10,000 | £3,000,000 | Plant hire, older assets, specialist underwriting |
| Paragon Bank | 5.5% – 14% | £25,000 | £2,000,000 | Mid-market, aged assets, established Ltd companies |
| Aldermore Bank | 5.5% – 14% | £5,000 | £2,000,000 | Adverse credit, flexible underwriting |
| Haydock Finance | 6% – 16% | £5,000 | £1,500,000 | Construction specialist, sole traders, deposit flexibility |
| Time Finance | 6% – 18% | £5,000 | £1,000,000 | New starts, adverse credit, last-resort access |
| Caterpillar Financial | 3.9% – 9.9% | N/A | N/A | New Cat machines only - dealer channel |
| JCB Finance (Lloyds) | 0% – 9.9% | N/A | N/A | New JCB machines only - dealer channel |
| Volvo CE Financial | 4% – 9% | N/A | N/A | New Volvo EC/EW - dealer channel |
| Komatsu Financial | 4.5% – 10% | N/A | N/A | New Komatsu PC series - dealer channel |
| Hitachi (via dealer) | 4.5% – 11% | N/A | N/A | New Hitachi Zaxis - dealer channel |
Top Independent Lenders - Ranked for Excavator Finance
The rankings below reflect our assessment of each lender's overall value for excavator finance across the full range of business types and situations. A lender that is first for a sole trader buying a used machine may be fifth for a large limited company buying a new fleet.
1 Close Brothers Asset Finance
4.5% – 12% APR
Close Brothers sits top of our independent lender ranking for overall breadth and value. Their willingness to finance sole traders, new-to-plant operators, older machines and adverse credit cases at rates that are genuinely competitive - not just available - makes them the most versatile lender on the market for excavator finance. For standard cases, they're within striking distance of Lombard; for difficult cases, they often produce the best outcome available.
Sole trader friendlyUsed plantNew to plantSame-day decisionsNo upper limit
2 Lombard (NatWest)
4% – 11.5% APR
Lombard is the market rate leader for businesses that qualify. No other independent lender consistently beats them on price for well-established limited companies with strong financials buying new or near-new machinery. Their limitation is the conservative criteria - sole traders, adverse credit and older plant don't fit. But if you qualify, the rate saving over a 5-year HP on a £200k excavator can be significant.
Market-leading ratesLarge dealsOperating leaseStructured finance£25k minimum
3 Novuna Business Finance
4.5% – 12.5% APR
Novuna's digital-first platform and same-day decision capability make them consistently valuable for contractors who need finance quickly for a new machine purchase. Rates are competitive with Close Brothers, and their operating lease product adds flexibility that some competitors can't match. Best suited to established businesses buying new or near-new plant.
Same-day decisionsDigital processNew assetsOperating leaseFormerly Hitachi Capital
4 Shawbrook Bank
5% – 13% APR
Shawbrook's specialist underwriting is the differentiator. Their asset finance team understands construction plant - excavator residuals, plant hire income models, and the value of a well-maintained older machine. Plant hire businesses and operators buying used excavators often find Shawbrook offers the best combination of rate and access in their market segment.
Plant hire specialistsOlder plantRefinanceHuman underwritingUp to 15yrs old
5 Aldermore Bank
5.5% – 14% APR
Aldermore's purpose-built flexibility for non-standard cases makes them the first call for adverse credit excavator finance. Their individual case assessment means a business with historic CCJs, thin credit file or unusual structure gets a proper review rather than an automated decline. Rates are fair for the credit risk they're taking.
Adverse creditCCJs consideredFlexible underwriting24-48h decisions£5k minimum
6 Haydock Finance
6% – 16% APR
Haydock is the go-to for construction-specific cases that need genuine sector understanding. Their underwriters know the ground-works market, understand excavator values and have a track record with sole traders and operators with seasonal income patterns. Deposit flexibility - including nil deposit in the right circumstances - sets them apart from more rigid lenders.
Construction specialistSole traderFlexible depositOlder plant
7 Paragon Bank
5.5% – 14% APR
Paragon fills a specific niche: established limited companies with clean credit who are buying aged assets that mainstream lenders won't touch at competitive rates. Their semi-specialist underwriting means a 10-year-old Liebherr with a full service history gets a proper assessment rather than a blanket age decline. Good for the mid-market with older plant requirements.
Mid-marketAged assetsSemi-specialist£25k minimum
8 Time Finance
6% – 18% APR
Time Finance is the access lender - they lend where others don't. New starts, significant adverse credit, directors with impaired personal credit. Their rates toward the top of their range are high, and we'll always tell clients when a better option is available. But for businesses that genuinely have no other route, Time Finance provides access to plant finance at commercially survivable rates.
New startAdverse creditHuman underwritingLow deposit possible
Qualification Factors - What Affects Your Rate
Your excavator finance rate is determined by a combination of factors. Understanding these helps you present your application in the strongest possible way - and manage expectations realistically before applying.
Time in Business
Three or more years' trading history unlocks the full lender market. Two years is sufficient for most lenders. Under two years narrows options to Close Brothers, Haydock, Aldermore and Time Finance. Under 12 months means Time Finance or Haydock with higher deposits.
Credit Profile
Clean Experian/D&B score and no director adverse: access to the full market including Lombard's best rates. One or two satisfied CCJs from several years ago: still access most lenders but at higher rates. Active CCJs or recent defaults: Aldermore, Haydock, Time Finance. Bankruptcy: very limited options.
Asset Age
New machines: full market access. 0–5 years old: all independent lenders. 5–10 years: most independent lenders (Lombard less enthusiastic). 10–15 years: specialist lenders - Close Brothers, Shawbrook, Haydock, Paragon on a case-by-case basis. Over 15 years: very limited appetite, higher deposits typically required.
Deposit
Larger deposits reduce lender risk and improve rates. 0% deposit is achievable for strong profiles on new assets. 10–20% is common for used machines. Adverse credit cases typically need 20–30%. Deposit can come from part-exchange of existing plant in some cases.
Turnover and Profitability
Higher turnover and demonstrable profitability support stronger credit assessments. Lenders typically look for the asset finance commitment to be comfortably supportable from trading income. Seasonal businesses should prepare management accounts showing the full annual revenue picture.
Business Structure
Limited company: full market access. Sole trader: most lenders consider, with Close Brothers and Haydock being most accommodating. Partnership: varies by lender. SPV or holding company structure: requires discussion - some lenders prefer the trading entity.
How Rates Have Moved in 2026
Excavator finance rates have been broadly stable through 2026. The Bank of England base rate, following its reductions in late 2024 and early 2025, has settled at a level that has fed through into asset finance pricing, though with some lag. Lender cost of funds has stabilised, meaning rate competition in the market has returned to more normal patterns after the elevated pricing environment of 2022–2024.
For businesses with strong credit profiles, rates have edged marginally lower compared with the peaks of the high-interest period. The 4–6% range for well-qualified limited companies buying new plant is broadly achievable again. For adverse credit and specialist cases, pricing has remained more elevated, reflecting higher risk assessment rather than pure cost of funds changes.
Manufacturer captive promotional rates continue to run, with Cat and JCB in particular using below-market finance as a sales driver for new machines during key commercial periods. These promotions are typically quarter-tied and vary by model.