What is Fleet Plant Finance?
Fleet plant finance refers to any arrangement where multiple construction plant assets are financed under a single facility or credit line, rather than as individual stand-alone agreements. The definition is flexible, but in practice it typically means three or more assets either financed simultaneously or through a revolving facility that allows ongoing additions.
The benefits over individual asset deals are primarily administrative - one application, one account to manage, one set of lender relationships - and potentially financial, with volume pricing where the total facility is large enough to give you real leverage with the lender.
Fleet finance suits growing plant contractors, plant hire companies managing a mixed fleet, and civils businesses that deploy multiple machines on large contracts. It is less suited to very small businesses financing one or two assets - for which individual HP or lease lines are simpler and more accessible.
Lenders With Fleet Plant Appetite
| Lender | Fleet Minimum | Fleet Maximum | Rate Range | Best Suited To |
|---|---|---|---|---|
| Lombard (NatWest) | £250,000 total | £10,000,000+ | 5.0 – 10.5% | Established companies, large civils contractors, long-term fleet management |
| Close Brothers Asset Finance | £50,000 total | £5,000,000 | 5.5 – 11.0% | SME fleet, plant hire companies, mixed plant types, 3-10 assets |
| Siemens Financial Services | £500,000 total | £10,000,000+ | 4.8 – 10.0% | Large-ticket fleet, technology-integrated plant, major infrastructure contractors |
| Paragon Bank | £100,000 total | £2,000,000 | 6.0 – 12.5% | Mid-market fleet, established SME contractors with clean credit |
| Novuna Business Finance | £50,000 total | £2,000,000 | 5.5 – 12.0% | New and late-used fleet, established businesses with clean credit |
| Haydock Finance | £25,000 total | £1,000,000 | 8.0 – 15.0% | Non-standard profiles, older fleet assets, adverse credit fleet situations |
Fleet Facility Structures
Master Lease Facility
A pre-agreed credit limit is set. Assets are drawn down against this limit as you acquire them. Each addition is a simple notification to the lender rather than a new credit application. Common for active fleet businesses buying assets throughout the year.
Block Discounting
Your existing fleet - already on HP or lease - is refinanced as a portfolio. The lender discounts the aggregate book value and advances cash. Used where a plant hire company wants to release capital from a portfolio of asset-backed agreements.
Individual Asset Lines Under One Facility
Multiple separate HP or lease agreements, each with its own payment schedule, but all arranged through a single credit assessment with one lender. Simpler than master lease but still benefits from the volume relationship.
Revolving Asset Finance Line
A facility with a rolling limit: as assets are repaid and closed out, headroom is restored and new assets can be added. Suits plant hire businesses with rapid fleet turnover - buying and selling assets regularly throughout the trading year.
Fleet Finance vs Individual Asset Lines
Fleet Facility - Advantages
- Single credit assessment covers all assets in the facility
- Volume pricing - typically 0.5-2% below equivalent individual deals
- Simpler administration - one lender relationship to manage
- Faster drawdowns for ongoing additions under a master facility
- Often better for growing businesses with clear fleet expansion plans
- Lender builds knowledge of your business and fleet over time
Individual Asset Lines - When Better
- Flexibility to use different lenders for different assets (best rate per asset)
- No concentration risk - not dependent on one lender relationship
- No minimum facility size requirement
- Better for occasional purchases rather than a planned fleet programme
- Simpler if assets are very different in type, age or risk profile
- More appropriate for smaller businesses below fleet lenders' minimums