Asset finance (UK)

Non-dilutive funding secured against equipment or infrastructure, used to finance capex without raising equity.

Most founders use asset finance when growth requires capex, not headcount.

Asset finance can work well when assets and contracts are clear. If repayment depends on uncertain growth, it can become risky.

See UK providers

Asset finance is repayable funding tied to specific equipment or infrastructure. Instead of raising equity to buy capex, founders use asset-backed facilities, leases, or infrastructure-style financing. Underwriting depends on asset value, resale risk, contracts, and repayment strength.

At a glance

Best for	Businesses financing equipment, hardware, compute, or infrastructure (capex-heavy operations)
Most common use	Equipment purchases, infrastructure deployment, hardware leasing, compute capacity expansion
Typical ticket size	Varies widely, from small leases to multi-£m facilities depending on assets
Speed	Can be efficient when assets and contracts are clear
Collateral / guarantees	Typically secured against the asset; personal guarantees vary by provider and risk profile
Trade-off	Non-dilutive capex funding, but repayment obligations and security terms can be strict

Note: asset finance terms depend heavily on asset type and contract structure. Always confirm security, ownership, and end-of-term options.

When asset finance is not the best fit

You are pre-revenue

If you are early-stage and pre-revenue, public and regional startup loans are usually more relevant.

You have predictable revenue and want flexible repayments

If you are funding growth spend rather than capex, revenue-based financing may be a better fit.

You are seed-backed and extending runway

If your goal is runway between rounds rather than equipment, venture debt may be the better category.

Asset finance providers

A practical starting list. As you expand this, capture asset types, security terms, and approval criteria.

HardwareComputeEquipment

Provider	Region	Typical ticket	Stage	Needs revenue	Notes
Equipment and asset finance providers	UK	Varies by asset and contract structure	Early to growth	Often	Financing is secured against equipment or infrastructure. Underwriting depends on asset value and repayment strength.
Infrastructure-backed lenders (compute, data centres, hardware)	UK / Europe	Larger facilities possible	Growth / infrastructure scale-up	Often	Common in compute-heavy and infrastructure-heavy businesses. Structure can resemble project finance.
Vendor / leasing arrangements	UK	Varies	Any	Sometimes	Some equipment suppliers offer leasing or embedded finance options. Terms vary widely.

As you add providers, include: asset types covered, ownership structure, security terms, and end-of-term options (buyout, return, renew).

Real examples from Startupmag

Real stories help founders see how asset finance is used in practice.

Nscale financed GPU infrastructure using a debt facility

Example: infrastructure-backed financing for capex-heavy deployments.

Read the story

FAQs

What is asset finance?

Asset finance is repayable funding secured against an asset such as equipment, hardware, vehicles, or infrastructure. The lender underwrites the asset value and your ability to repay.

Is asset finance only for hardware startups?

It is most common in hardware, deeptech, manufacturing, and infrastructure-heavy companies, but it can also apply to any business financing equipment or capex assets.

Does asset finance require personal guarantees?

Sometimes. Many facilities are secured primarily against the asset itself, but some providers still request guarantees depending on risk and trading history.

How is asset finance different from venture debt?

Asset finance is tied to specific equipment or infrastructure. Venture debt is typically tied to venture backing and growth trajectory rather than a specific asset base.

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