Guide
Asset finance for new limited companies and businesses with weaker credit
Reviewed by Luca Scalzo, Director, WFYA Limited · Last reviewed
A new limited company or a business with a weaker credit history can still apply for asset finance, but there are usually fewer lenders and the terms can be different, for example a larger deposit, a shorter term or a personal guarantee from a director. A weaker credit history can change the conditions you are offered, but we can still review your application. No broker or lender can guarantee approval: all finance is subject to status and each lender's own checks.
What do lenders look at when a company is new?
- The directors: their experience in the industry and their personal credit history often matter more than the company's.
- The asset: vehicles and machines that hold their value, like vans, HGVs and plant, are easier to finance than specialist or fast depreciating items.
- Deposit: a deposit reduces the lender's risk.
- Evidence of income: contracts, purchase orders, business bank statements or a business plan with forecasts.
- Personal guarantee: many lenders ask a director to guarantee the agreement when the company has little trading history.
What counts as weaker credit?
Lenders look at the business's and directors' credit files. Late payments, defaults, county court judgments (CCJs) or previous insolvencies can all reduce the number of lenders available. How recent the problems are, whether they have been settled and whether there is a clear explanation all make a difference.
How can you prepare?
- 01
Check your credit files
Look at the company's and the directors' credit files and correct any mistakes before you apply.
- 02
Gather evidence
Have your bank statements, any accounts or management figures, contracts and the supplier's quote ready.
- 03
Be upfront
Tell us about any past issues and the reasons behind them, so we approach lenders that consider applications like yours.
What can change in the offer?
| Established business, clean credit | New company or weaker credit | |
|---|---|---|
| Number of lenders | Wider choice | Fewer lenders |
| Deposit | Depends on lender and asset | Often higher |
| Term | Up to the asset's working life | Sometimes shorter |
| Personal guarantee | Sometimes | More often |
| Cost | Depends on lender | Usually higher, reflecting the lender's risk |
Sources
Checked on 31 October 2026.
Frequently asked questions
Can a new limited company get van finance?
Yes, often. Vans hold their value well, so lenders are more comfortable financing them for new companies, usually with a director's guarantee and sometimes a deposit. See van finance.
Can I get asset finance with a CCJ or default?
It is possible, but it reduces the choice of lenders and can change the terms. It helps if the CCJ or default is settled, older and explained. We can review your application and tell you honestly what is realistic.
How long does a company need to trade before getting asset finance?
There is no single rule. Some lenders want a set period of trading or filed accounts; others look mainly at the directors and the asset. We will tell you which lenders on our panel fit your situation.
Will my personal credit affect my company's application?
For new and small companies, usually yes. Lenders often check the directors' personal credit files and may ask for a personal guarantee.
Is approval guaranteed for start ups?
No. No legitimate broker or lender can guarantee approval. Be wary of anyone who does.
I have been refused before. Can you still help?
A previous refusal does not automatically rule you out. We will look at your circumstances and, where appropriate, introduce you to lenders on our panel. All finance is subject to status and to each lender's own checks.
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