Close Brothers Asset Finance: Review & Alternatives
An impartial review of Close Brothers asset finance: how it works, eligibility, costs, speed and fair alternatives from Aldermore and Time Finance.
Close Brothers Asset Finance is the asset finance division of Close Brothers Group, a long-established UK merchant banking group. It provides hire purchase, finance leasing and refinance for businesses buying or releasing cash from equipment, vehicles, plant and machinery. It tends to suit established SMEs and larger firms that value a relationship-led approach and sector expertise, rather than the fastest possible online decision.
This review explains how Close Brothers asset finance works, who it fits, and how it compares to other lenders so you can weigh your options. Greenwood Capital is a whole-of-market broker, not a lender, and this page is educational only.
Close Brothers asset finance at a glance
Close Brothers asset finance is a secured facility where the asset being financed usually acts as the security. It is aimed at businesses seeking structured, medium-term funding tied to specific equipment or vehicles, with terms typically shaped by the asset’s expected life.
| Feature | Detail |
|---|---|
| Funding range | Broadly from a few thousand pounds up to large multi-million pound facilities, depending on asset and profile |
| Secured or unsecured | Secured, usually against the asset financed (sometimes with additional security) |
| Typical speed | Days to a couple of weeks, depending on complexity and documentation |
| Best for | Established SMEs and larger businesses buying or refinancing plant, machinery, vehicles and equipment |
| Products | Hire purchase, finance lease, operating lease, refinance and sale and leaseback |
Always confirm current ranges, terms and figures directly with the lender, as criteria change.
How does Close Brothers asset finance work?
Close Brothers asset finance lets a business spread the cost of an asset over time instead of paying the full amount upfront, using the asset itself as the primary security. You make regular payments across an agreed term, and the structure you choose determines whether you own the asset at the end.
The division is known for a sector-specialist model, with teams that focus on areas such as transport, construction, agriculture, engineering, print, recycling and technology. This means underwriters often understand the resale value and working life of specialist kit, which can help with more unusual assets.
The main products
- Hire purchase is an agreement where you pay in instalments and own the asset outright once the final payment (and any option-to-purchase fee) is made. It suits businesses that want to keep the asset long term.
- Finance lease is where you rent the asset over its useful life and benefit from its use, while the lender retains ownership. It can help with cash flow and VAT treatment.
- Operating lease is a shorter rental arrangement where you use the asset for part of its life and return it, useful when you do not want to own or dispose of it.
- Refinance and sale and leaseback release cash tied up in assets you already own, by financing them and returning capital to the business.
The right structure depends on tax, accounting and ownership goals, so speak to your accountant about the treatment for your situation.
Who is eligible for Close Brothers asset finance?
Close Brothers generally lends to UK-registered businesses, including limited companies, partnerships and sole traders, with a preference for established trading histories. It assesses the business, the directors and the asset together, rather than relying on a single automated score.
In practice, underwriters tend to look at:
- Trading history and accounts. Filed accounts, management figures and profitability help build the picture. Newer businesses can still be considered, particularly with strong sector experience or security.
- Affordability and cash flow. Bank statements and forecasts show whether the repayments are serviceable.
- The asset. Its type, age, condition and resale value affect the deposit, term and appetite. Hard, durable assets with clear resale markets are viewed favourably.
- Director or shareholder profile. Personal credit history and industry experience matter, and personal guarantees may be requested, especially for smaller companies.
- Existing borrowing. Current commitments and any adverse credit are taken into account.
Because decisions are relationship-led, a proposal with context (why the asset is needed and how it drives revenue) often lands better than figures alone.
What does Close Brothers asset finance cost?
Asset finance pricing is not a single published rate. It is priced per deal based on the asset, the term, the deposit, the business profile and prevailing market conditions, so two businesses can be quoted very differently.
Costs are typically structured around several elements:
- The interest or rental rate, which reflects risk and asset type. Rates vary by profile and security, so check current terms.
- Deposit or initial payment, which can reduce the amount financed and influence the rate.
- Term length, usually matched to the asset’s useful life, commonly a few years for many assets.
- Fees, which may include documentation or arrangement fees and, on hire purchase, an option-to-purchase fee.
- Balloon or final payment, where a larger sum is deferred to the end to lower monthly payments (more common on vehicles).
Do not rely on headline numbers from any source. Ask for a full written quote showing the total amount payable, all fees and the end-of-agreement position, and confirm the current figures directly with the lender before committing.
The application process step by step
Applying for Close Brothers asset finance usually runs through a broker or a direct sales contact rather than a purely online form, reflecting its relationship-based approach. A typical journey looks like this.
- Step 1: Enquiry and structure. You outline the asset, the amount, the term you want and your business background, and discuss which product fits.
- Step 2: Documentation. You provide accounts, bank statements, details of the asset and supplier information, plus director details.
- Step 3: Underwriting. The credit team assesses affordability, the asset and the profile, and may ask follow-up questions or request a guarantee.
- Step 4: Offer. You receive terms setting out payments, deposit, fees and the end position. Review the total cost carefully.
- Step 5: Documentation and payout. Once agreements are signed and any conditions met, the lender pays the supplier (or releases funds on a refinance) and the term begins.
How fast is it, and what should you have ready?
Straightforward Close Brothers asset finance can complete within a few days, while larger or more complex deals with additional security or bespoke structures can take a couple of weeks. Having your paperwork ready is the single biggest factor in a quick decision.
To move quickly, prepare:
- The latest filed accounts and recent management figures
- Three to six months of business bank statements
- A supplier invoice or proforma for the asset, with make, model and specification
- Details of the directors, including addresses and dates of birth
- An explanation of how the asset supports the business and its revenue
For refinance, you will also need proof of ownership and evidence the asset is unencumbered or nearly so.
A worked example
Consider a Yorkshire groundworks contractor that has won a larger council framework and needs an additional 20-tonne excavator costing around £120,000. It has three years of accounts, is profitable, and wants to own the machine at the end because it will use it for years.
Hire purchase fits well here. The business puts down a deposit, spreads the balance over a term aligned to the excavator’s working life, and owns the machine after the final payment. Because the excavator has a strong resale market and the underwriter understands construction plant, the deal is assessed on the asset’s merits as well as the accounts. The predictable monthly payments let the contractor price the framework confidently while preserving cash for wages and materials. The exact rate, deposit and fees would depend on the profile, so the business would confirm the full written quote before proceeding.
Pros and cons of Close Brothers asset finance
Pros
- Deep sector expertise, which helps with specialist, high-value or unusual assets
- A relationship-led, human underwriting approach rather than a purely automated one
- A broad product range covering hire purchase, leasing and refinance
- Backing of a long-established, listed UK banking group
- Ability to structure larger and more complex facilities
Cons
- Less suited to those wanting an instant, fully online decision
- Pricing is bespoke and not published, so comparison takes effort
- May favour established businesses over very new start-ups
- Personal guarantees can be required, particularly for smaller companies
How does Close Brothers compare to the wider market?
Close Brothers is a strong choice for established businesses financing specialist or higher-value assets who value expertise, but it is worth comparing against other capable lenders. Because asset finance is priced per deal, the best outcome often comes from putting the same proposal to several providers.
Aldermore
Aldermore is a UK bank offering asset finance including hire purchase and leasing across vehicles, plant and equipment. It has an established SME focus and a strong broker network, and can be competitive on mainstream, well-understood assets. Businesses weighing Close Brothers often quote Aldermore alongside it to compare structure and cost.
Time Finance
Time Finance is an independent UK provider offering asset finance and refinance, often with flexibility on smaller-ticket and more varied deals. It can be a useful option where a business wants an alternative view on affordability or is financing lower-value or mixed assets. As with any lender, confirm current terms and appetite directly.
High street banks
The major clearing banks offer asset finance and can be cost-effective for existing customers with strong balance sheets. They can be less flexible on unusual assets or thinner trading histories, and turnaround can be slower, so they suit straightforward requests where an existing relationship helps.
Specialist and independent funders
A wide field of independent asset finance funders serve niches such as agriculture, transport, technology and soft assets. They can be nimble and creative on structure, though rates and appetite vary considerably, which is exactly where comparing the market pays off.
Close Brothers tends to be the better choice when the asset is specialist, the value is significant, or the deal benefits from underwriters who genuinely understand the sector. Where speed, small-ticket simplicity or an existing bank relationship matters more, one of the alternatives may fit better.
Who is Close Brothers asset finance best for?
Close Brothers asset finance is best for established UK SMEs and larger firms buying or refinancing plant, machinery, vehicles or specialist equipment, who value sector knowledge and a considered underwriting process over an instant decision. It is particularly strong on higher-value and non-standard assets.
You may want to look elsewhere if you are a very new start-up with no trading history, you need a small-ticket facility approved in minutes online, or you are chasing the lowest possible rate on a mainstream asset where a bank relationship already exists. In those cases, comparing several lenders side by side is the sensible route.
Compare Close Brothers with the whole market
Greenwood Capital is a Manchester-based, whole-of-market finance broker specialising in secured business lending. We are not a lender, and this page is general information, not financial advice. Because asset finance is priced deal by deal, we can put your situation to Close Brothers, Aldermore, Time Finance and other funders so you can compare structures and costs side by side.
If you would like help matching your asset finance need to the right lenders, share a few details and we will compare the market for you and explain your options clearly. You confirm final terms and figures directly with the lender before you commit.