Rate Indexes / Asset Finance
UK Asset Finance Rate Index 2026
This index provides indicative rate ranges for UK asset finance products including hire purchase, finance lease, and operating lease. Rates are sourced from Spark Finance's lender panel and reflect typical pricing for equipment, vehicle, and machinery finance during the stated period. Asset finance rates depend significantly on the asset type, age, residual value, and lender appetite for the sector.
Key Facts - Asset Finance
6% to 18%
5% to 16%
£5,000 to £5,000,000+
1 year to 7 years
10% to 25% typical; 0% available
Same day (sub-£50k) to 5 working days
Vehicles, plant, machinery, technology
Indicative Rate Ranges
Rates are indicative only. Your actual rate depends on credit profile, trading history, loan size, security offered, and the lender's current appetite. These ranges do not constitute a quote or guarantee.
| Category | Indicative Rate | Notes |
|---|---|---|
| Commercial vehicles (hire purchase, prime) | 6% to 10% APR | New or late-plate vehicles, strong trading record |
| Commercial vehicles (hire purchase, standard) | 10% to 18% APR | Older vehicles or shorter trading history |
| Plant and machinery (prime) | 7% to 12% APR | New equipment, established business, clean credit |
| Plant and machinery (specialist/soft assets) | 12% to 22% APR | Older assets, niche equipment, or higher-risk profile |
| IT and technology (finance lease) | 8% to 18% APR | Depreciation risk affects lease rates |
| Agricultural equipment | 6% to 14% APR | Sector-specific lenders may offer keener pricing |
Eligibility Factors
- Asset type and age - lenders assess residual value and saleability in default
- Trading history - 12 months minimum typical; 2+ years for best rates
- Director credit history - adverse credit limits options but specialist lenders available
- Business financials - profitable businesses with strong turnover access better pricing
- Deposit - higher deposits reduce LTV and typically improve rates
- Asset depreciation profile - assets that hold value attract better terms
- Sector - some sectors face restrictions due to asset risk or business risk
Lender Types
- Specialist asset finance lenders (Shawbrook, Aldermore, Together)
- Vehicle finance specialists
- Agricultural and specialist equipment lenders
- Technology and soft asset lenders
- High street bank asset finance divisions
Frequently Asked Questions
What is a typical interest rate for UK asset finance?
Indicative APRs for UK asset finance typically range from 6% to 22% depending on the asset type, age, your credit profile, and trading history. Commercial vehicles and new equipment for established businesses typically attract the lowest rates (6-12%). Older assets, soft assets like IT, or businesses with shorter trading histories face higher rates. Finance leases may not be quoted as APR - compare total cost of borrowing carefully.
Is hire purchase or finance lease cheaper?
This depends on your tax position and cash flow needs. Hire purchase gives you asset ownership at end of term and access to capital allowances. Finance lease does not transfer ownership but lease payments are typically fully deductible as a business expense. The right choice depends on your specific tax position and cash flow profile. Speak to your accountant and a Spark Finance adviser to compare the true cost of each option.
Can I get asset finance with bad credit?
Yes, specialist lenders on the Spark Finance panel specifically focus on adverse credit asset finance. Having CCJs, defaults, or a short trading history does not automatically disqualify you. The asset itself provides security, which makes lenders more willing to consider adverse credit applications than with unsecured products. Rates will be higher, and a deposit may be required.
Methodology
Rate ranges are compiled from asset finance applications processed through the Spark Finance broker panel. Ranges represent the 10th and 90th percentile of observed initial offer rates. Rates reflect APR where applicable; finance leases may be quoted as pence-per-pound or monthly rental rather than APR. Data updated quarterly.
Source notes
- Spark Finance broker panel - 250+ UK specialist lenders
- Applications processed June 2024 to June 2026
- Spark Finance is a credit broker, not a lender
- FCA Authorised, FRN 958123