Having the right equipment is key for your business, whether that’s machinery, vehicles, software, or any other tool that helps get the job done. If a piece of equipment breaks, or there’s an opportunity to upgrade, you'll need readily available funds to keep your operations running in peak condition.
Equipment hire and purchase stalled during the Covid-19 pandemic, but many companies are looking to invest once again. According to the Finance & Leasing Association, new business levels in the plant and machinery finance sector were up 9% in January 2022 compared to 12 months earlier.
If you require newer or better equipment to expand your business, you may be assessing your financial position. Many borrowing options can help you make a large, one-off purchase or service rental costs, so it’s important to understand which is right for you. You might find that conventional equipment finance products aren't suitable, in which case Fleximize could prove the perfect solution. Read on to find out more.
What is equipment finance?
Equipment finance enables you to acquire the equipment you need to achieve your growth goals. It's a type of asset finance that allows businesses to spread the cost across monthly repayments, during which they benefit from use of the equipment. By avoiding upfront payments, you can better preserve your cash flow.
A standard equipment finance provider will usually secure the loan against the asset itself. This can aid affordability, but it also means that vital equipment can later be recovered by the lender.
What types of business might need equipment finance?
Equipment loans may be suitable across a wide range of sectors. These businesses could include:
What are the different types of equipment finance?
Business equipment financing can typically be divided into two main forms: leasing and hire purchase.
Equipment leasing is where you rent the equipment for an agreed period, during which you make regular payments. Once the agreement ends, the equipment is returned without you ever taking ownership.
There are two main types of leasing: operating leases and finance leases. An operating lease is where you rent a piece of equipment for a short time without taking on any repair or maintenance costs. With a finance lease, also known as a capital lease, you borrow the asset for much of its lifespan, so these are longer-term arrangements. You also take on many of the costs of ownership.
As with leasing agreements, hire purchase involves paying regular instalments over a given period, during which you have possession of the equipment. However, the key difference is that you’re paying to own the asset at the end of the term. This type of finance is particularly useful if the asset will retain its value in the long term.
If you’re struggling to find the right type of lease or hire purchase from traditional or specialist lenders, that doesn’t mean you’re out of options. Fleximize’s business loans could be the ideal substitute for conventional equipment finance.
Equipment loans from Fleximize
Our fast, flexible funding can be used for almost any purpose, making it a great substitute for traditional equipment or machinery finance. You can choose between unsecured and secured options with our Flexiloan and Flexiloan Lite. So that you can move quickly to secure your much-needed assets, we’ll endeavour to have the money in your account within 24 hours. Here’s a summary of the key features of Fleximize’s business loans:
- Borrow between £5,000 and £500,000 over 3 – 48 months
- Unsecured and secured options
- Interest rates from 0.9% per month, charged on a reducing balance
- Approval and deposit in as little as 24 hours
- No hidden fees or early repayment penalties
- Repayment holidays and top-ups available with all loans
- Exclusive discounts on industry-leading business services and tools via our Member Marketplace
Your equipment loan has to suit you and your company. We work closely with our customers to put together a tailored finance package with flexible features available throughout your loan term. Our flexibility applies to our application criteria too. We aim to say ‘yes’ to as many businesses as possible, which is why we look at more than your credit history to make an overall assessment.
What can a Fleximize business loan be used for?
Unlike a typical equipment loan from an asset finance lender, Fleximize’s funding can support growth across your business as a whole. In addition to your equipment needs, your funds could go towards:
Check your eligibility for equipment finance in the UK
We're different to other finance providers in that we don't apply strict lending criteria. However, there are some basic requirements you'll have to meet. To qualify for Fleximize's answer to equipment finance, you'll need to:
- Be a UK-based business registered with Companies House.
- Have traded for at least six months with a minimum monthly turnover of £5,000.
- Be a homeowner, unless you're looking for a loan value under £20,000. If you're not a homeowner, your business must have been trading for 36 months or more.
- We don't secure our loans against company assets, but like many lenders, we'll ask for a personal guarantee.
Your equipment loan terms will partly depend on your business' location:
- Businesses in England and Wales can apply for up to £500,000 on either a secured or unsecured basis.
- If you're based in Northern Ireland and Scotland, we can offer unsecured loans of up to £250,000.
How much does equipment or machinery finance cost?
Interest rates on our equipment loans start from just 0.9%. Some lenders charge additional fees for paying ahead of schedule, but our Penalty-Free Promise means you’ll have no such concerns. Therefore, you can make significant savings with over or early repayments. Your dedicated relationship manager will make any costs apparent from the start, and you can reach out to our team anytime with questions about your repayments.
You can use our business loan calculator to estimate the overall cost of your equipment finance. However, if you want a member of our team to build you a tailored quote, give us a call on 020 7100 0110.
Why choose Fleximize?
Since 2014, we’ve lent over £200 million to thousands of SMEs nationwide. Here are just five reasons why business owners come to us for equipment finance in the UK:
- Flexible: You can take advantage of top-ups, repayment holidays, and our Penalty-Free Promise to build a funding package that suits you.
- Personal: Your dedicated relationship manager will be on hand to help you with anything you need. They’ll also be here if you return for repeat funding, as many of our customers do.
- Award-winning: We’ve picked up plenty of industry acclaim, including twice being named Best Business Finance Provider at the British Bank Awards.
- Fuss-free: Apply in minutes and, if you’re accepted, the money could be in your account within 24 hours.
- Trusted: See from our customer reviews and case studies how we’ve helped small business owners just like you gain access to vital working capital.
How our business equipment loans have helped others
Shelley Dickinson, owner of Shelley’s Pie & Mash Shop, came to Fleximize for urgent capital to purchase new kitchen equipment and restaurant fittings, as well as other expansion plans. We were able to offer an unsecured business loan of £8,400 over 18 months, leaving Shelley – and her customers – fully satisfied.
Shelley Dickinson, owner of Shelley's Pie & Mash Shop in Cromer, Norfolk, used a Fleximize loan to pay for new kitchen fixtures
Apply for equipment finance today
Equipment financing could be the difference between surviving and thriving for your business. Applying with Fleximize is a fast, fuss-free process, so why not complete our simple online form today. Providing you pass our initial checks, we could deposit the funds within 24 hours of receiving your documentation.