Asset Finance for New Businesses and Start-Ups

Yes - specialist asset finance lenders routinely fund new and recently formed businesses. This is one of the real advantages of asset-backed finance over unsecured lending: the asset itself provides the primary security, reducing the dependence on trading history.

A new haulage company formed six months ago can get truck finance if the director has haulage experience, a credible business plan, and a reasonable deposit. A newly formed ground engineering company can get piling rig finance with the right background.

• Director experience: The most important factor for a new business. Someone with 10 years' experience in haulage forming a new haulage company is a very different application from someone with no sector experience.
• Business plan: A credible projection of how the asset will generate the income to service the finance. Contracted work is stronger than projected work.
• Deposit: New businesses typically need a higher deposit - 20-30% rather than 10-15%. This gives the lender greater cushion against residual value risk.
• Personal credit history: For new companies, lenders often look through the company to the director's personal credit. A clean personal credit history is important.
• Asset selection: Choose an asset with a strong secondary market and residual value. A major-manufacturer new excavator or HGV is a much stronger application than a highly specialist or older used machine.

Some sectors consistently fund new businesses successfully because the assets are well-understood and the sector experience is easy to demonstrate:

• Haulage and logistics: Owner-operator truck finance for new haulage companies with experienced drivers.
• Construction and plant hire: Excavator and telehandler finance for newly formed plant hire businesses with experienced directors.
• Agriculture: Tractor and machinery finance for new farming businesses - particularly where the director is taking over an established farm.
• Dentistry and healthcare: GP surgery and dental practice finance for newly qualified practitioners.

• Gather evidence of sector experience before applying: CVs, employment history, previous company directorships, relevant qualifications and licences.
• Have a written business plan with realistic financial projections based on verifiable income assumptions.
• Arrange contracted work or letters of intent from customers before the finance application where possible.
• Choose a well-known asset from a major manufacturer. Avoid highly specialist, unusual, or old assets for your first application.
• Budget for 20-25% deposit. A higher deposit significantly improves approval odds for new businesses.

A decline from one lender does not mean no lender will fund you. The specialist lending market for asset finance is large and diverse - different lenders have different risk appetites for different sectors and circumstances.

We typically approach 3-5 specialist lenders for any single application, identifying the most appropriate for the specific business profile and asset type. A decline from one is often approved by another with a slightly different structure or higher deposit.