Can the funding include installation, software, warranties and maintenance?
Short answer: yes, often — if the costs are itemised and aligned to the right type of finance
Yes, many UK business finance options can include installation, software, warranties and even maintenance — but it depends on the funding type, the lender’s policy, and how your supplier quote is structured. Lenders commonly include “soft costs” such as delivery, training, and commissioning alongside the main asset, and some will fund software licences or service packs if they’re integral to the equipment. Ongoing maintenance and subscriptions are more variable, and may need a different facility or a pre-paid service arrangement to be included.
At Best Business Loans, we don’t lend or broker directly; we help established UK companies find suitable funding providers who support these inclusions where appropriate. Submit a Quick Quote and we’ll guide you to lenders or brokers who are actively financing projects like yours.
What counts as “soft costs” and why lenders look for them
Soft costs are non-physical elements of a project that support the core asset, such as installation, software setup, delivery, training, extended warranties, and commissioning. Many asset finance providers will include some or all soft costs, because they are essential to getting the equipment operational and productive. The inclusion is not guaranteed, but clear itemisation and sensible ratios to the asset value significantly improves your chances.
For software, lenders distinguish between perpetual licences tied to the equipment, time-limited licences, and pure SaaS subscriptions. Perpetual or multi-year licences connected to the hardware are more widely financed, whereas month-to-month subscriptions are often treated as operating expenses that suit a working capital or cashflow facility.
Benefits of bundling these costs into funding
Bundling installation and related services into the finance reduces upfront cash outlay and accelerates deployment. It also keeps total project costs in one agreement, simplifying budgeting and approvals. However, blending services with assets may slightly increase the total cost of finance, so it’s worth comparing scenarios before you proceed.
What can be included by funding type?
Different finance structures have different rules for soft costs. Below is a practical overview to help you align your quote with the most suitable route for your use case. Remember, acceptance is always subject to credit, lender criteria, and your project’s specifics.
Hire Purchase (HP) and Finance Lease
HP and finance lease can often include installation, delivery, training, commissioning, calibration, and extended warranties when directly linked to the asset. Many providers will also consider embedded software or perpetual licences that enable the equipment to function. Some lenders cap soft costs or ask for separate lines for clarity, particularly for higher-value projects or where software is a large proportion of the total.
Installation and commissioning
These are commonly fundable if they’re part of making the asset operational. Lenders typically require the supplier’s invoice to itemise installation and commissioning to tie them to the asset. Integration works that are structural or property-related may fall under fit-out finance instead.
Software and licences
Perpetual or multi-year licences bundled with the equipment are frequently included. Pure software without hardware can be financeable via specialist “software finance” products or unsecured loans, depending on the profile. Short-term SaaS is usually better served via cashflow facilities.
Warranties and maintenance
Extended warranties and pre-paid service packs can be included if they are purchased upfront and linked to the asset. Ongoing maintenance billed monthly is unlikely to be financed under an asset agreement, but may be included in a contract hire package or supported by a working capital loan.
Operating Lease and Contract Hire
Operating leases and contract hire for vehicles and some equipment can include maintenance and tyres as part of an all-inclusive rental. This approach is common for fleets and certain machinery where the funder retains asset risk. Software is less typical here unless embedded, but extended warranties or service cover can be part of the rental if pre-agreed.
Unsecured Business Loans and Cashflow Finance
General-purpose loans can be used to pay for software, installation, warranties, and maintenance without bundling them into an asset agreement. This route may suit businesses with multiple suppliers, purely digital projects, or incremental upgrades. Expect lenders to ask for a clear rationale, expected ROI, and up-to-date financials.
Fit-Out and Refurbishment Finance
Fit-out finance can fund furnishings, fixtures, M&E installation, signage, technology, and related soft costs as a project package. Warranties provided by contractors can often be included when they are part of the contracted works. Ongoing maintenance contracts are generally excluded unless pre-paid and time-bound.
Invoice Finance and Working Capital Facilities
If you need flexibility for ongoing service costs, an invoice finance facility or revolving credit line can support maintenance and subscription payments as they arise. This does not wrap costs into the asset but gives you cashflow headroom to spread operating expenses.
How to structure your project so lenders can include these items
The way you present your project makes a significant difference to what can be funded. Lenders want clarity, proportionality, and evidence that each element supports the asset’s productive use. Follow the steps below to give your application the best chance.
Step-by-step checklist
1) Obtain a fully itemised supplier quote separating the core asset, installation, software, warranty, and training lines. 2) Ensure the description links each soft cost to the asset’s operation or project outcomes. 3) Choose finance types that naturally suit the mix — e.g., HP for equipment plus installation, unsecured for standalone software.
4) Align terms with useful life — do not finance a one-year warranty over five years. 5) Confirm who provides each service, especially if multiple suppliers are involved. 6) Ask the provider whether soft costs are capped and how they treat software and pre-paid maintenance.
Documents that help approvals
Provide your latest management accounts, filed accounts, and recent bank statements to demonstrate affordability. Share project scopes, installation plans, and warranty schedules where applicable. If software is included, attach licence terms and proof of duration to support term alignment.
Common roadblocks and how to avoid them
Large software proportions relative to hardware can cause hesitation in standard asset finance; consider a blended approach or a dedicated software facility. Ongoing maintenance billed monthly often cannot be wrapped; pre-pay it if you want it included, or use a working capital line. Civil works that alter premises may require a fit-out facility rather than a pure equipment agreement.
Supplier and staging considerations
If there are multiple suppliers, you may need staged drawdowns or a master agreement to handle part-deliveries. Clarify delivery, installation milestones, and acceptance criteria to avoid funding delays. Ask suppliers to align invoice timing with your finance approval and asset delivery plan.
Cost, VAT and compliance considerations
Understanding the full cost, VAT treatment, and compliance obligations helps you compare options fairly. This section covers the essentials you should review with your accountant and finance partners before proceeding. It’s not tax or legal advice.
Total cost of ownership and interest impact
Bundling services into the finance spreads the cost but can increase total interest paid versus paying some items upfront. Compare a cash price versus financed price for each element, including extended warranties. Consider whether pre-paying maintenance nets you a discount that offsets the cost of finance.
VAT, accounting and tax treatment
VAT treatment varies by agreement type: with HP, VAT on the asset is typically payable upfront, while leases usually apply VAT on rentals. Services like installation and training carry VAT and should be clearly itemised for accurate treatment. Discuss capital allowances (including AIA) and software accounting with your accountant to ensure compliance with HMRC rules.
Ownership, warranties and service obligations
Under HP, you usually own the asset after completing payments; warranties typically sit with you and the supplier. Under leases, clarify who holds the warranty and who is responsible for maintenance during the term. Make sure extended warranties and service packs are transferable and match the planned term of use.
Fair, clear and not misleading information
All financial information should be fair, clear and not misleading in line with FCA standards for financial promotions. Terms, eligibility, and rates depend on your business profile, credit status, and the lender’s criteria. Best Business Loans operates as an independent introducer; we do not offer finance ourselves, and nothing here is personal advice.
For regulatory context, see the FCA’s guidance on financial promotions at fca.org.uk. You should also ensure your use of funds complies with any scheme-specific rules, for example those set by the British Business Bank for government-backed programmes.
Sector examples and how we help you include these costs
Different industries have distinct patterns for bundling installation, software, and service costs. Below are common scenarios where inclusion is achievable with the right structure. If your sector is not listed, our network still likely supports it.
Healthcare and diagnostics
Clinics acquiring imaging, lab, or treatment equipment often include delivery, installation, calibration, software, and a multi-year service contract. Many funders are comfortable with this when each component is clearly tied to the device’s operation. For sector-specific guidance, see our page on healthcare business loans.
Manufacturing and engineering
Machine tools, CNC, robotics, and automation projects typically include commissioning, programming, training, and extended warranties. Software controllers and perpetual licences are often bundled under HP or lease. Maintenance may be wrapped if pre-paid, or covered via a revolving facility if ongoing.
IT, digital and professional services
Servers, networking, and on-prem systems can package installation and multi-year support. Pure SaaS is rarely financed as an asset but can be managed with a working capital loan or line of credit. For hybrid projects, consider a split: asset finance for hardware, and unsecured finance for software and services.
Vehicles, logistics and transport
Contract hire commonly includes maintenance, tyres and roadside assistance as part of a fixed monthly rental. Telematics and dashcam software may be included if contracted for the full term. For mixed fleets, providers may offer tiered packages to match each vehicle’s duty cycle.
How Best Business Loans supports your route to funding
We help you identify lenders or brokers who routinely include soft costs for projects like yours. Our AI-led matching shortlists relevant providers based on your sector, asset type and budget. You stay in control, comparing options before you decide your next step.
Start in minutes. Complete a Quick Quote to check your eligibility and get connected to suitable providers for your installation, software, warranty and maintenance needs.
Key takeaways
Yes — funding can often include installation, software, warranties and maintenance when clearly itemised and aligned with the right finance type. Pre-paid, time-bound services are more easily wrapped than open-ended maintenance or monthly SaaS. A structured quote, sensible term alignment, and the correct facility selection are the keys to success.
FAQs: including installation, software, warranties and maintenance in business finance
Can I include installation and commissioning in asset finance?
Often yes. Most asset funders accept installation and commissioning when they are directly needed to make the asset operational and are itemised on the supplier invoice.
Will lenders fund software?
Frequently, if it’s an embedded or perpetual licence linked to the equipment. Standalone software or short-term SaaS may need a specialist software finance solution or a working capital facility.
Are extended warranties and maintenance packages fundable?
Extended warranties and pre-paid service packs can be included with many providers. Ongoing, usage-based maintenance is typically excluded unless it forms part of a fixed maintenance rental under contract hire.
Can a general business loan cover these costs instead?
Yes. Unsecured loans or revolving credit can pay for software, maintenance, and installation without tying them to an asset. Lenders will assess affordability, purpose, and expected outcomes.
What documents should I prepare?
An itemised supplier quote, warranty or service schedules, software licence terms, and recent financials. Clear documentation helps lenders include each element appropriately.
Do I pay VAT upfront?
It depends on the agreement type and the items funded. Under HP, VAT on the asset is often due upfront; leases usually apply VAT on rentals, and services carry VAT on their respective lines. Confirm with your accountant.
How does Best Business Loans fit in?
We are an independent introducer. Our platform matches your requirements with lenders or brokers who may include installation, software, warranties, and maintenance where suitable. There is no obligation to proceed.
Next step: get your Quick Quote
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Important information
Best Business Loans is an independent introducer and does not offer finance directly. Eligibility, terms and costs depend on your circumstances and the provider’s criteria; approvals are not guaranteed. Information on this page is for general guidance only and is not financial, legal, tax or accounting advice; please seek professional advice tailored to your situation.
Updated October 2025.