Challenges for New Businesses
Most mainstream asset finance lenders require 2–3 years of audited or filed accounts before considering an application. For a business 6–24 months old, this closes off many doors. However, the specialist market has evolved significantly - a number of lenders now focus specifically on start-up and early-stage businesses, accepting management accounts, bank statements and order books as evidence of viability.
Lenders Who Accept Start-Ups
The following lender types regularly consider early-stage businesses for industrial equipment finance:
- Time Finance - accepts 12 months' trading history with strong management accounts
- Flexi-fi - specialist start-up and SME lender
- Private / challenger funders - more flexible criteria but higher rates (10–15%)
- Asset-based lenders - advance against asset value rather than business track record
DBF identifies the lenders most likely to approve based on your specific profile and submits to multiple simultaneously.
What to Prepare
To give a new business application the best chance: prepare 12 months' bank statements, VAT returns (if registered), a current management P&L, details of your order book or contracts in place, and a brief description of how the equipment will generate revenue. A director's CV demonstrating relevant sector experience helps significantly.
18-Month Fabricator Finances £45k Press Brake
Business: Sheet metal fabrication startup, 18 months trading, limited company Asset: Durma press brake (new), £45,000 Challenge: No filed accounts, management accounts only Solution: HP over 48 months, 25% deposit (£11,250), finance £33,750 at 10.5% Monthly payment: £875/month Director PG: Required DBF lender: Time Finance - approved within 5 days