Can I get equipment finance with bad credit?

Yes, some lenders offer equipment finance options for businesses with less-than-perfect credit. You may need to provide additional documentation or accept a higher interest rate, but having a strong cash flow and a detailed business plan can improve your chances of approval.

What types of equipment can I finance?

You can typically finance any asset that's essential to running your business, including vehicles, machinery, technology, medical devices, construction equipment and even office fit-outs. Lenders usually consider whether the asset has identifiable value and can serve as security for the loan.

Do I need a deposit for equipment finance?

Not always. Some lenders offer up to 100% finance, meaning you won't need to pay a deposit. However, putting down a deposit can reduce your repayments and may help you secure a more competitive interest rate.

Is the equipment used as security for the loan?

Yes, in most cases, the equipment itself acts as collateral for the loan. This means if you default on repayments, the lender can repossess the equipment to recover the outstanding balance. Because of this security, rates on equipment finance can be lower than unsecured loans.

Can I finance second-hand equipment?

Many lenders allow you to finance used equipment, provided it's in good working condition and holds sufficient resale value. Some lenders may have age or condition restrictions, so it's best to confirm minimum standards before applying.

What happens at the end of an equipment lease?

At the end of the term, you may have a few options depending on the type of lease: you can purchase the equipment for a residual amount, return it to the lender or upgrade to a newer model through a new lease agreement.

Can startups apply for equipment finance?

Yes, it's possible. While lenders often prefer businesses with trading history, some will consider startups if you have a solid business plan, evidence of cash flow, or a guarantor. You might also boost your approval chances by providing a deposit or additional security.

How quickly can I get approved for equipment finance?

Approval times vary by lender, but many online and specialist lenders can provide conditional approval within 24–48 hours. More complex applications, such as high-value finance or bespoke equipment, may take longer to assess.

Can I claim tax deductions on equipment finance?

Depending on your business structure and finance type, you may be able to claim tax deductions on interest payments, depreciation or lease costs. It's best to speak with your accountant or tax adviser to ensure you're maximising any available deductions.

What documents do I need to apply for equipment finance?

Most lenders will ask for identification, business financial statements, bank statements and tax returns. You may also need to provide a quote or invoice for the equipment, along with details about your business operations and cash flow.