The Current Rate Environment - October 2026
The Bank of England base rate sits at 4.25% as at October 2026 - down from its 5.25% peak in 2023 but still significantly above the near-zero levels of 2020-2021. Lender appetite for construction plant finance remains strong. The sector's low default rates and the inherent security provided by the asset (which can be repossessed and remarketed) mean specialist lenders compete actively for quality plant finance business.
The practical effect for borrowers: rates are higher than the cheap-money era, but specialist lenders are pricing keenly for good quality applications. A strong business with clean credit, financing a new or late-used machine, should achieve rates in the 5-8% range. The spread between the best and worst rate available for any given borrower is often 3-5 percentage points - which is why broker comparison genuinely matters.
Lender appetite has also broadened. Several lenders who tightened criteria in 2023-2024 have reopened to adverse credit and start-up applications as their books have stabilised. The market for used and older plant has also improved - lenders have become more comfortable funding assets up to 12-15 years old where condition can be evidenced.
Rate Table: All 12 Lenders - Construction Plant Finance
| Lender | HP Rate Range (APR) | Lease Rate Range | Min Finance | Max Finance | Best For |
|---|---|---|---|---|---|
| Close Brothers Asset Finance | 5.5 – 9.5% | 5.0 – 9.0% | £10,000 | £5,000,000 | Strong credits, sole traders, new plant |
| Lombard (NatWest Group) | 5.0 – 10.0% | 4.8 – 9.5% | £25,000 | £10,000,000+ | Established companies, fleet |
| Aldermore Bank | 6.5 – 13.0% | 6.0 – 12.5% | £5,000 | £500,000 | SMEs, light adverse, start-ups |
| Shawbrook Business Finance | 6.5 – 14.0% | 6.5 – 13.5% | £10,000 | £1,000,000 | Used plant, older assets |
| Novuna Business Finance | 5.5 – 11.5% | 5.0 – 11.0% | £5,000 | £2,000,000 | Strong credits, new and late-used |
| Siemens Financial Services | 5.0 – 10.5% | 4.8 – 10.0% | £50,000 | £10,000,000 | Large-ticket plant, fleet, tech |
| Paragon Bank | 6.0 – 12.5% | 5.8 – 12.0% | £10,000 | £2,000,000 | SME plant, fleet facilities |
| Haydock Finance | 8.0 – 15.0% | 7.5 – 14.5% | £5,000 | £1,000,000 | Adverse credit, older plant |
| Time Finance | 8.5 – 18.0% | 8.0 – 17.0% | £5,000 | £500,000 | Adverse, start-ups, non-standard |
| 1pm plc | 9.0 – 18.0% | 8.5 – 17.5% | £3,000 | £250,000 | Small plant, adverse, sole traders |
| White Oak / Bibby Financial Services | 9.5 – 20.0% | 9.0 – 19.0% | £5,000 | £500,000 | Adverse, restructuring |
| Reward Funding | 10.5 – 22.0% | 10.0 – 21.0% | £5,000 | £250,000 | Start-ups, adverse, asset-backed |
Rates as at October 2026. HP = Hire Purchase. Lease rates shown are for Finance Lease. All rates are APR and indicative only - subject to credit assessment and asset inspection where applicable.
Rates by Equipment Category
Different plant categories attract different lender appetites - and therefore different rate ranges. Here is what you should expect for each major category, along with a link to the category-specific page for full lender detail.
Excavators & Diggers
Strong appetite from all lenders. New JCB, Komatsu or Volvo on clean credit: 5-7%. Older machines (10+ years) with adverse: 13-16%. Excavator finance →
Telehandlers
Excellent lender appetite. Telehandlers residualise well, which keeps rates competitive. Manitou, JCB, Merlo - most ages accepted. Telehandler finance →
Cranes
Large-ticket, specialist lenders (Lombard, Siemens) dominate. High-value deals attract keener rates. Operating lease common for tower cranes. Crane finance →
MEWPs & Access
Scissor lifts and boom lifts have strong residuals. Operating lease often used here. Older platforms (10+ years) attract higher rates. MEWP finance →
Dumpers
Broadly accepted. High-mileage or heavily used machines will attract more scrutiny. HP is standard. Dumper finance →
Wheel Loaders
Good lender appetite. Caterpillar, JCB and Volvo hold value well. Good depreciation profile supports competitive rates. Loader finance →
Compactors & Rollers
Bomag, Hamm, Dynapac - most lenders accept. Heavy static compactors more specialist. Rates track overall plant market. Compactor finance →
Concrete Equipment
Concrete pumps and volumetric mixers attract slightly higher rates due to specialist nature and maintenance requirements. Concrete equipment finance →
Piling Equipment
Niche lenders required for piling rigs. Bauer, Casagrande, Junttan - high value assets with limited resale market. Shawbrook and Close Brothers are most active. Piling finance →
Road Construction Plant
Pavers and planers from Wirtgen, Vögele, Dynapac. High-value assets where Lombard and Siemens are strong. Competitive rates for established contractors. Road plant finance →
How to Get the Best Rate: 6 Key Factors
Your rate is not fixed - it's the output of several variables that lenders assess. Understanding these lets you present your application in the strongest possible light.
- 1
Credit Profile
The single biggest driver of rate. A clean credit file for both the business and its directors unlocks the lowest-rate lenders. CCJs, defaults, missed payments or IVAs push you toward specialist lenders with higher pricing. If you have adverse credit, be transparent - lenders will find it, and telling us upfront lets us target the right lender first time.
- 2
Asset Age and Condition
New or late-used plant (under 3 years) attracts the lowest rates. As plant ages, lender risk increases (higher maintenance costs, narrower resale market) and rates rise. Most lenders have hard age limits - typically 10-15 years at end of term - and will add 1-3% to their rate for older assets. Condition matters too: a well-maintained machine with full service history is viewed differently from an unknown-history purchase.
- 3
Deposit Size
A larger deposit reduces lender risk and typically secures a better rate. Zero deposit (100% LTV) deals are available for strong credits on new plant but carry a rate premium of 1-2%. A 20-30% deposit will noticeably improve your terms with most lenders - and meaningfully reduce your monthly payment regardless of rate.
- 4
Time in Business
Lenders want to see trading history. Two or more years of filed accounts opens the full lender panel. Under two years (start-up or early-stage) restricts the available lenders and typically adds 2-4% to the rate - though specialist lenders (Time Finance, Haydock) actively target this segment. A longer track record, supported by management accounts and bank statements, always helps.
- 5
Sector and Asset Type
Mainstream plant (excavators, telehandlers, dumpers) is well-understood by all lenders - competition is strong and rates are sharper. Niche or specialist equipment (piling rigs, specialist road plant, high-tech concrete equipment) is financeable but with fewer lenders and typically higher rates. Industry risk matters too: groundworks and civil engineering attract slightly less lender appetite than, say, plant hire businesses with broad customer bases.
- 6
Business Turnover and Profitability
Larger, profitable businesses with strong management accounts access the best rates. Lenders want to see that debt service is comfortably covered by trading income. The debt service coverage ratio (DSCR) - broadly, EBITDA divided by annual finance payments - should ideally be above 1.5x. Higher turnover also unlocks higher finance limits and longer terms from most lenders.