Can I combine equipment finance with a cashflow loan or invoice finance?

The short answer and why it matters

Yes — many UK SMEs successfully combine equipment finance with a cashflow loan and/or invoice finance, provided affordability, security, and lender consent are in place. This blended approach can fund assets, stabilise working capital, and release cash tied up in invoices without over‑stretching day-to-day liquidity. The right structure depends on your sector, trading profile, and existing commitments.

At Best Business Loans, we don’t lend directly, but we help you explore viable combinations across a network of specialist lenders and brokers. Our AI-driven matching points you toward providers who understand multi-facility structures. You stay in control, with no obligation to proceed.

What each product does — in brief

Equipment finance (hire purchase, finance lease, or asset loan) helps you acquire machinery or technology while spreading cost over the asset’s useful life. The asset often serves as primary security. Cashflow loans are unsecured or lightly secured term loans used for working capital or growth projects, usually based on trading performance. Invoice finance (factoring or invoice discounting) advances a percentage of your unpaid invoices to accelerate cash conversion.

When and how facilities can be combined

Popular combinations

Equipment finance + cashflow loan: Use asset finance to acquire the kit and a separate term loan to cover installation, training, or marketing. This keeps asset costs ring-fenced while giving headroom for non-asset spend. Equipment finance + invoice finance: Fund the machine and pull forward cash from debtor balances to cover materials, labour, and cycle time.

All three together: Some growing firms blend asset finance, invoice finance, and a modest working capital loan for resilience. Lenders will assess cumulative leverage, servicing capacity, and intercreditor arrangements. Each provider must be comfortable with the overall structure and security priorities.

Key lender considerations

Affordability: Underwriting tests whether cashflow supports all monthly commitments with a buffer for stress. This includes seasonality and debtor cycles. Security: Asset finance usually takes a fixed charge over the equipment; invoice finance typically takes a floating charge or all‑asset debenture with control over receivables.

Priority and consent: Where multiple charges exist, lenders may require an intercreditor deed to define who gets paid first from certain assets. Covenants and conduct: Facilities may have covenants on leverage, debtor performance, or information reporting that must work together.

What can stop a combination?

Conflicting security claims, a global negative pledge, or a lender’s prohibition on additional borrowing can block new facilities. Weak margins, poor debtor quality, or a thin cash buffer may also lead to declines. Early engagement helps identify viable structures before you apply.

Benefits, risks, and sector-specific examples

Benefits of combining finance

Match cost to benefit: Finance the machine over its life while preserving working capital for operations.
Speed and flexibility: Invoice finance can flex with sales, supporting peaks after you invest in capacity.
Diversified funding: Reduces reliance on a single lender and can improve resilience.
Better cash discipline: Separate facilities provide clearer cost tracking per initiative.

Risks and how to manage them

Over-commitment: Too many facilities can strain servicing capacity; build a cash buffer and scenario-test.
Security conflicts: Avoid double charging the same asset class without an intercreditor agreement.
Covenant clashes: Align reporting dates and performance metrics across lenders.
Fee layering: Consider total cost of capital, not just headline rates.

Examples by industry

Manufacturing: Use hire purchase for CNC machinery, invoice discounting to fund raw materials, and a small term loan for tooling and accreditation. Transport and logistics: Lease vehicles, use invoice finance for contract receivables, and keep a revolving cashflow facility for fuel and maintenance spikes.

Healthcare: Asset finance for diagnostic equipment, selective invoice finance for NHS or insurer invoices, plus a short-term loan for fit‑out costs. Printing and signage: Finance a new digital press, fund consumables with invoice finance on B2B trade debtors, and reserve a modest working capital top‑up for installation and training. See our guide to printing business loans and finance options for more context.

Structuring, documentation, and what lenders look for

Common structures that work

Asset finance + revolving cashflow line: Term the asset; keep a flexible line for short-term needs.
Asset refinance + top-up loan: Refinance owned equipment to release equity; add a small term loan for project spend.
Invoice finance + asset lease: Lease production equipment; use invoice finance to bridge customer payment terms.
Seasonal top-ups: Add temporary cashflow tranches to cover peak periods, subject to performance.

Security and priority in practice

Asset finance providers usually take a fixed charge over the specific machine or vehicle. Invoice finance providers typically take an all‑asset debenture or a floating charge with control of receivables. An intercreditor deed may set out priority so the asset lender has first claim over the machine, while the invoice financier controls debtor proceeds.

Cashflow loan providers may request a debenture and/or personal guarantee depending on size and credit strength. Your adviser or broker will help align facility documents so they do not conflict. Expect information sharing consents and standard undertakings.

What you’ll likely need to provide

Last 2 years’ statutory accounts and recent management accounts.
12 months’ bank statements and aged debtor/creditor reports.
Quotes or invoices for the equipment, asset details, and serial numbers where available.
Business plan or use-of-funds summary and cashflow forecast.
Existing finance agreements and security schedule for consent checks.

Stronger files gain faster decisions and better terms. Clean financials and transparent narratives help underwriters build confidence.

Getting started with Best Business Loans, FAQs, and key takeaways

How we help you build the right blend

Best Business Loans is an independent introducer that connects established UK businesses with lenders and brokers for equipment finance, invoice finance, and working capital loans. We use AI-supported matching to shortlist relevant providers who understand multi-facility setups. It’s quick to submit details, and there’s no obligation to proceed.

Simple next steps

Complete a Quick Quote for an eligibility check and indicative terms.
Get matched to suitable lenders or brokers for each facility type.
Receive a decision in principle, then align documents and consents.
Compare offers, review total cost, and proceed if you’re happy.

We aim to make the process clear, fair, and not misleading, so you can make informed decisions. Terms and availability depend on status, credit assessment, and lender criteria.

FAQs

Can I take equipment finance if I already have invoice finance?

Often yes, because the asset can be ring-fenced under a fixed charge while the invoice financier retains control of receivables. Your existing lender may need to consent, and an intercreditor deed might be required. Lender underwriting will test affordability across both facilities.

Does combining facilities increase my costs?

Total cost may rise with multiple products, but the structure can reduce cash strain and fund growth. Assess the all-in cost versus the benefits of faster delivery, capacity, or sales. Compare like-for-like with fees, covenants, and notice periods included.

Will I need personal guarantees?

Some cashflow loans and smaller asset deals request a personal guarantee, particularly for SMEs. The need and size vary by credit strength, security coverage, and facility size. Discuss alternatives such as limited guarantees or additional asset security with your broker.

Are there turnover or trading history minimums?

Most lenders prefer at least 12 months’ trading, with stronger options after 2 years. Invoice finance often requires B2B invoices on credit terms and good debtor spread. Specialist lenders may support younger firms with robust contracts or assets.

Can I combine facilities if I’ve had a previous dip in performance?

Possibly, if you can evidence recovery, backlog, or contract wins and present a credible forecast. Lenders will assess recent trends, margins, and cash controls. Clear explanations and strong management accounts help.

How quickly can I complete a combined setup?

Simple asset finance can complete in days; invoice finance onboarding often takes 1–3 weeks. Intercreditor negotiations may add time where required. Early document preparation speeds everything up.

Will a combination harm my bank relationship?

Not if it’s transparent and well-structured. Many banks accept complementary facilities where they do not conflict with existing covenants or security. Always review your bank’s terms and obtain consent if needed.

Important compliance notes

Best Business Loans does not lend or provide financial advice. We introduce UK businesses to third-party lenders and brokers based on the information you provide.

All finance is subject to status, credit checks, affordability assessment, and lender criteria. Terms, fees, rates, and availability can change and may differ by sector, security, and performance.

Information on this page is for general guidance only and is not a recommendation. You should consider independent professional advice where appropriate.

Key takeaways

You can combine equipment finance with a cashflow loan or invoice finance if lenders consent and affordability is proven.
Blended facilities help match asset costs to life and fund day‑to‑day operations without cash squeeze.
Watch for security priority, covenant alignment, and total cost across products.
Preparation and transparency speed approvals and improve terms.
Use an introducer to coordinate lenders, documents, and intercreditor steps efficiently.

Updated: October 2025

Ready to explore your options? Submit a Quick Quote for an eligibility check and decision in principle from relevant providers.

About Best Business Loans

BestBusinessLoans.ai is an independent UK introducer using AI-supported matching to connect established companies with suitable finance providers. We do not offer loans directly and there is no obligation to proceed after your enquiry. Your data is handled securely and shared only with relevant partners for the purposes of your request.