😵💫 Despite what you think, there IS logic to equipment finance lending criteria.
Let me translate the banker's playbook.
Most UK SME owners think lenders are just being difficult.
The truth?
They're protecting their downside whilst trying to back your upside.
Here's what they're ACTUALLY looking for:
**Trading History**
6-12 months of accounts is the baseline.
Brand-new practice? You'll need a larger deposit and a business plan that doesn't read like wishful thinking.
**Credit Profile**
Directors' personal credit matters (especially for smaller loans).
A few missed payments won't sink you.
But CCJs or active defaults? You're heading to specialist lenders at higher rates.
**Affordability**
Can your practice comfortably cover the monthly payments?
They'll model your revenue, existing debts, and typical outgoings.
Simple maths.
**Asset Condition & Supplier**
New equipment from a reputable supplier? Quick approval.
Used kit or obscure brands? Expect extra checks, condition reports, and valuations.
The Documents You'll Need:
- Business accounts (latest 1-2 years if available; projections if you're a start-up)
- Bank statements (typically last 3 months)
- Proof of ID and address for directors/partners
- Supplier quote or invoice (equipment, price, VAT breakdown)
- Business plan (especially for newer practices or larger tickets)
The bottom line?
Getting approved is straightforward when you understand the logic.
It's not gatekeeping.
It's risk management.
And when you speak their language, the process becomes a formality rather than a fight.
What's been your biggest challenge with equipment finance?
Drop me a note in the comments, before it all changes again!
I am David Howat, Managing Director of Forward Asset Finance. Forward Asset Finance is a trusted UK finance brokerage specialising in tailored funding solutions for new and established businesses, as…
