Asset Finance for Construction Plant & Machinery
By Joshua Giles, Founder and Director · Reviewed by the CoreFi credit team
Last updated 20 July 2026
CoreFi is a broker, not a lender. We do not set rates and lenders make all credit decisions.
In short: Construction asset finance spreads the cost of plant such as excavators, telehandlers and tippers over its working life, secured on the machine rather than your property. Agreements typically run from £10k to £3M over 2 to 7 years on hire purchase or lease, with fixed monthly payments. We are a broker and place these for UK limited companies.
Construction plant is expensive and the work is lumpy. You win a contract, you need a telehandler on site in three weeks, and you do not want to drain your working capital before the first application for payment lands. That is the problem asset finance solves here.
The mechanic is simple. The lender buys the asset and you make monthly payments over the agreed term, usually two to seven years. The plant itself is the security, so you are not tying up property or other assets to get it funded. On hire purchase the asset sits on your balance sheet from day one, which matters because the Annual Investment Allowance lets you offset the full cost against Corporation Tax in the year of purchase rather than drip-feeding it over the term.
The lenders who say yes to construction are rarely the high-street banks. They are specialist asset funders who know that a groundworks contractor does not run the same cashflow in January as in August. They will structure a seasonal payment profile, lower through the winter months, higher when the site programme is in full swing. They will also build a balloon into the end of the term if you want to keep monthly costs down during a contract, with a lump sum due when the job completes and the plant is either sold or refinanced.
We regularly see deals structured around a single contract duration. If your project runs 18 months and you need the machine for that window, the term can reflect it. No broker can promise you a rate or an advance percentage before a lender has seen the deal, and we will not pretend otherwise. What we can do is tell you which funders have live appetite for construction plant right now and what they typically want to reach a decision.
Key Benefits
- Hire purchase puts the plant on your balance sheet from day one, so you can claim Annual Investment Allowance against Corporation Tax in the same year rather than spreading it over the term
- Lenders who specialise in construction will build a seasonal payment profile into the agreement, lower through winter, higher when your programme picks up
- The asset itself is the security, so you are not cross-collateralising against property or giving personal guarantees beyond a standard director warranty
- Owned plant sitting in your yard can be refinanced to release working capital, which helps between contracts when cashflow tightens before the next mobilisation
Frequently Asked Questions
Can I finance equipment for a single contract?
Yes, and it is worth matching the term to the job. If the contract runs 18 months, a lender can set payments to that window. For very short programmes, an operating lease or hire arrangement can cost less overall because you hand the machine back rather than own something you no longer need.
What about plant that moves between sites?
Mobile plant such as excavators, dumpers, telehandlers and cranes is financed routinely. The lender will want to see insurance that covers multiple site locations and may require a tracker on higher-value machines. Have the insurance schedule ready when you apply and it moves faster.
Can I part-exchange existing equipment?
If you are buying through a dealer, part-exchange is common. The trade-in value reduces the amount financed, which brings the monthly payment down. Some lenders will also take a settled book value into account if you are refinancing and upgrading at the same time.
Is finance available for specialist attachments?
Yes. Breakers, augers, compaction plates and similar attachments can be financed either bundled with the base machine or as separate items. Minimum deal sizes typically sit at £5k to £10k, so small individual attachments are usually better bought outright or bundled with the host machine.
Work out your numbers
Related Funding Options
Asset Finance UK: Rates, Providers, HP & Leasing
Asset finance rates and providers for UK limited companies: hire purchase, lease and asset-backed loans. We are a broker, placing your case with lenders that fit.
Bridging Loans for Construction Companies
Short-term bridging finance for UK construction companies. Secure land, cover retention gaps, and move on sites before the high street bank has issued a decision in principle.
Construction & Development Finance UK
Development finance released in stages against your build schedule, not as a lump sum. We place construction finance for UK developers from £250k to £25M.
Asset finance by location
Lender appetite varies by city and region. If you would rather start from where your business is based, these local guides cover the same funding with the local picture.
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Get matched with lendersCoreFi is a trading name of JG Core Ltd (Company #16218779, England & Wales). CoreFi acts as a commercial finance broker and does not provide regulated financial advice. All products described are unregulated business-to-business finance. Information on this page is for general guidance only and does not constitute a formal offer of finance. Terms, rates, and availability are subject to lender criteria and may change without notice.