Asset Finance for IT Equipment
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: IT equipment finance spreads the cost of servers, laptops, networking and storage over their working life, secured on the kit itself. Because technology dates and loses resale value fast, an operating lease with a refresh at the end often fits better than owning obsolete hardware. Terms typically run 2 to 4 years to match the refresh cycle. We are a broker: we place your case for UK limited companies and the lender sets the rate.
IT hardware is the mirror image of most assets a finance lender sees. A server or a fleet of laptops loses value quickly and is close to worthless the moment a new generation ships, which is why lenders class it as a soft asset: the kit itself gives them little to recover if a deal goes wrong. That changes how these deals are underwritten and which structure makes sense.
Because resale value falls away, ownership is often the wrong goal. An operating lease, where you use the hardware over an agreed term of commonly two to four years and hand it back at the end, tends to fit better than hire purchase. You match the term to your refresh cycle, avoid being left holding obsolete kit you cannot sell, and upgrade to current spec at renewal. Some businesses run this as a rolling programme, effectively a device-as-a-service arrangement rather than a one-off purchase. Hire purchase still has a place for infrastructure you expect to run for years, where owning it and claiming Annual Investment Allowance up front makes sense.
We place this for offices kitting out, professional-services firms and tech companies doing a hardware refresh, and managed service providers funding kit they deploy to their own clients. A useful feature of IT finance is that soft costs can often be wrapped in: installation, cabling, configuration and sometimes software licences and warranties, so the whole project sits in one facility rather than only the boxes. Not every lender allows it, and how much soft cost they will fund varies, so it is worth knowing before you apply.
The trade-off for a soft asset is underwriting. With little residual to lean on, lenders weigh the strength of your company more heavily than they would on plant or vehicles, and may look for a stronger covenant, a larger deposit or a director guarantee, particularly on a younger Ltd. Established businesses with clean accounts get the smoothest run. The hardware is the lender's security, so it can be repossessed if repayments are not maintained. No broker can promise a rate or an approval before a lender has seen the file. What we do is take your refresh to the funders who are comfortable lending against technology and tell you which structure fits.
Key Benefits
- An operating lease lets you hand the hardware back at the end and refresh to current spec, so you are not left owning obsolete kit that has almost no resale value
- Matching the term to a two-to-four year refresh cycle keeps you on current technology and turns a large capital outlay into a predictable monthly cost
- Soft costs like installation, cabling, configuration and sometimes software and warranties can often be wrapped into the same facility, not just the hardware
- Spreading the cost preserves the working capital a growing business needs, instead of sinking it into equipment that depreciates from the day it is switched on
- Hire purchase remains available for infrastructure you intend to run for years, with Annual Investment Allowance claimable on the full cost in the year of purchase
Frequently Asked Questions
Why is IT equipment called a soft asset?
Because it loses value quickly and has little resale market once a newer generation ships, so the kit itself gives a lender limited security to recover. Contrast that with a steel container or a machine tool, which holds value for years. The practical effect is that lenders lean more on the strength of your company than on the hardware, which can mean a stronger covenant, a larger deposit or a director guarantee.
Should I lease or buy IT hardware?
For most fast-refreshing kit like laptops, servers and networking, an operating lease fits: you use it, hand it back and upgrade at the end, avoiding obsolete hardware you cannot sell. Hire purchase suits infrastructure you plan to run for years, where owning it and claiming Annual Investment Allowance up front makes sense. It comes down to how long the kit stays useful and your tax position, so take your accountant's view.
Can I include software and installation in the finance?
Often, yes. IT finance can usually wrap soft costs, installation, cabling, configuration, and sometimes software licences and warranties, into the same facility as the hardware. How much soft cost a lender will fund varies, and not all will, so it is worth confirming before you apply. We tell you which funders take a broad view of soft costs and which stick to the physical kit.
Can I add equipment to an existing IT facility as we grow?
Many lenders offer a master lease or facility line that lets you draw down further equipment under agreed terms as you add headcount or roll out a project, without re-papering the whole agreement each time. It suits a scaling business doing staged deployments. The terms and the limit are the lender's decision, set against your covenant.
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£54,000
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£1,344
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£64,502
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£10,502
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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.