If you don’t support property finance or commercial mortgages, how can I fund storage upgrades, barns or cold rooms?
Short answer
You don’t need a mortgage to fund storage upgrades, barns, or cold rooms. Many UK firms use non-property finance such as asset finance, hire purchase, equipment refinance, unsecured business loans, invoice finance, or specialist fit-out finance to deliver these projects. Best Business Loans can match you with lenders and brokers who support these routes for trading businesses.
Updated: October 2025
The non‑property routes that can fund barns, storage and cold rooms
Asset finance and hire purchase for tangible kit
Most storage and temperature-control projects include physical assets that can be financed without a mortgage. These include modular buildings, refrigeration packs, insulated panels, compressors, racking, doors, sensors, and controls. Asset finance or hire purchase can spread the cost over 2–7 years with the asset itself used as primary security.
Finance lease and operating lease for flexibility
Where you want lower upfront cost or easier upgrades, leasing can work well. You pay rentals to use the equipment rather than buying outright initially. This is common for modular cold rooms, monitoring systems, and certain prefabricated structures.
Unsecured business loans for mixed project costs
Not every cost is a “financeable” asset, like ground prep, electrical work, or project management. An unsecured business loan can cover these soft costs alongside an asset facility. Terms typically run 6–60 months, subject to affordability and credit strength.
Fit-out finance for interiors and mezzanines
Fit-out finance can bundle racking, mezzanines, flooring, lighting, and M&E within one agreement. This suits warehouse modernisations where you keep the same premises but upgrade storage and energy efficiency. Lenders may fund by stage payments to your installers.
Invoice finance to unlock cash tied up in sales
If you invoice other businesses on terms, invoice finance can accelerate your cash flow. This can release working capital to part-fund the project or cover VAT and deposits. It’s fast to implement and scales with your turnover.
Which options suit barns, storage upgrades and cold rooms?
New barns and modular buildings
Traditional building projects often use property-secured finance, which we don’t support. However, many agricultural and industrial barns today are manufactured as modular or steel-framed structures. These can be funded via hire purchase or lease as plant and equipment, subject to lender criteria.
Cold rooms, chillers and refrigeration
Refrigeration assets are well-suited to asset finance, including packs, evaporators, condensers, and insulated enclosures. Smart controls, variable speed drives, and data logging can be added to the asset schedule. Energy-efficient systems may also qualify for green or sustainability-linked funding.
Racking, mezzanines and warehouse automation
Racking and mezzanines are typically fundable via asset or fit-out finance. Conveyors, pick-to-light systems, and handling equipment can be added. This route avoids tying funding to the property and keeps the structure flexible.
Blending facilities to cover all costs
Few projects fit neatly into a single facility. A common approach is asset finance for the kit, plus an unsecured loan for ground works, civils, or professional fees. Invoice finance can complement this by smoothing cash flow during installation.
When refinance can help
If you already own eligible machinery or vehicles, asset refinance can release equity to fund the upgrade. This can be quicker than sourcing a completely new line of credit. It may also improve cash flow if you move from ownership to a structured repayment plan.
Practical steps to get funded without a mortgage
1) Define the scope and assets clearly
List all assets to be purchased, including model numbers, supplier quotes, and specification sheets. Separate “hard assets” like plant and equipment from “soft costs” like ground preparation or consultancy. Lenders prefer clear asset schedules and installation timelines.
2) Choose the structure: HP, lease, or loan
Hire purchase suits ownership at the end of term, often with VAT payable upfront or funded depending on the lender. Leasing offers lower initial outlay and potential off–balance sheet benefits depending on your accounting treatment. Unsecured loans are best for non-asset project elements or when speed matters.
3) Prepare documents to speed approval
Recent filed accounts, up-to-date management information, bank statements, and an assets list will help. Provide any planning, regulatory or compliance evidence if the project requires it. A simple cash flow forecast shows affordability and de-risks the application.
4) Consider security and guarantees
Asset finance relies on the asset as primary security, but personal guarantees may still be requested. Unsecured loans usually require a personal guarantee and a strong trading case. Larger facilities might involve a debenture, subject to lender policy.
5) Timeframes and staged drawdowns
Simple asset finance can be approved in days once documents are complete. Complex installations may use stage payments direct to your suppliers against milestones. Clarify delivery dates, commissioning, and acceptance criteria to keep funds flowing smoothly.
Costs, risks, and how we help you compare
Understanding total cost and cash flow
Compare APR or flat rates, fees, deposits, and any final payments or options to purchase. Model repayments against energy savings or efficiency gains from your upgrade. Check VAT treatment for HP versus lease and plan for any VAT funding requirement.
Common risks and fair warnings
Late or missed repayments can adversely affect your business and credit status. Secured agreements may put assets at risk if you do not keep up repayments. Variable energy savings and seasonal revenue should be stress-tested in your projections.
Eligibility signals lenders look for
Established UK trading, stable revenues, and clear use of funds improve your chances. Sector experience, maintenance plans, and supplier credibility all help. Clean bank conduct and evidence of affordability are also important.
How Best Business Loans supports your journey
We don’t lend money or arrange mortgages. We use AI-driven matching to introduce you to lenders and brokers who actively fund barns, storage, and cold rooms without property security. You stay in control, compare options, and choose what suits your goals and cash flow.
Who this works best for
Established SMEs with defined projects and asset lists tend to benefit most. Sectors include agriculture, food and drink, manufacturing, logistics, and warehousing. If you operate in UK farming, see our guidance on agriculture business loans to get started.
Real examples, grants, and next steps
Example: Farm cold store upgrade
A vegetable producer funds new chillers, insulated panels, and variable speed drives via asset finance over five years. An unsecured top-up covers ground works and electrical upgrades. The project reduces energy costs and shrinkage while preserving working capital.
Example: Warehouse racking and mezzanine
A wholesaler replaces aging racking and adds a mezzanine using fit-out finance. A small revolving facility covers VAT and supplier stage payments. Increased pick efficiency and safety compliance pay back the monthly rentals.
Grants and public support to explore
UK businesses should review relevant schemes from DEFRA, devolved administrations, local authorities, and the British Business Bank. Depending on your region and sector, capital and energy-efficiency grants may be available. Blending grant support with commercial finance can reduce total project cost.
How to move forward now
Outline your project and desired budget, and gather supplier quotations. Complete a Quick Quote to let our AI suggest suitable providers for your sector and asset types. There’s no obligation to proceed, and you can evaluate options before you decide.
Key takeaways
- You can fund barns, storage upgrades, and cold rooms without a mortgage.
- Use asset finance, leasing, hire purchase, fit-out finance, unsecured loans, and invoice finance.
- Blend facilities to cover both assets and soft costs, and consider grants where available.
- Prepare a clear asset schedule, supplier quotes, and cash flow to improve approval chances.
- Best Business Loans introduces you to suitable UK providers; you remain in control.
Popular non‑property finance options for storage, barns and cold rooms
Asset finance and hire purchase
Ideal for tangible assets like refrigeration packs, modular buildings, doors, and racking. Typically 24–84 month terms, with the asset as primary security. Option-to-purchase at term end is common for HP.
Finance lease and operating lease
Useful when you want to preserve capital or keep technology current. Rentals may be fully or partly deductible for tax, subject to your accountant’s advice. End-of-term options vary by provider and contract.
Unsecured term loans
Cover soft costs such as ground works, civils, design fees, and electrical. Terms are usually shorter than asset facilities, with PGs often required. Speed of approval can be an advantage for time-critical projects.
Fit-out finance
Bundles interiors and equipment upgrades into one facility. Suitable for racking, mezzanines, lighting, and M&E in an existing building. Stage payments can be made directly to your contractors.
Invoice finance
Releases cash from B2B invoices to reduce pressure during installation. Works as a flexible line that grows with revenue. Can be used alongside asset or unsecured facilities.
How to prepare a strong application
Define the project and list assets
Provide supplier quotes, specifications, and a timeline. Separate assets from soft costs for the right facility mix. Confirm any planning, H&S, or compliance requirements early.
Show affordability with simple numbers
Share recent accounts, three to six months’ bank statements, and a cash flow forecast. Include seasonal patterns if you are in agriculture or food production. Indicate expected savings or productivity gains from the upgrade.
Know your security position
Asset deals rely on the asset first, with PGs when appropriate. Unsecured loans rely on the business’s proven ability to repay. Larger lines may involve debentures, subject to lender policy.
Pick reputable suppliers
Lenders favour established installers with a track record. Maintenance and warranty arrangements can help demonstrate sustainability of the investment. Evidence of aftercare and service agreements is a plus.
Plan for VAT, deposits and stage payments
Discuss VAT profile on HP versus lease with your accountant. Consider a short facility to cover VAT or deposits if needed. Clarify when your suppliers need funds to avoid delays on site.
FAQs
Can I finance a new barn without a mortgage?
Yes, if the barn is modular or treated as plant and equipment, some lenders will fund it via asset finance or HP. Terms depend on the structure, installation method, and your trading profile. Traditional property-secured lending is outside our service.
Is a cold room classed as an asset for finance?
Refrigeration packs, insulated panels, doors, controls, and monitoring are typically financeable. Many providers will treat the system as a financeable asset schedule. Eligibility depends on supplier, installation, and residual value.
Can I fund racking, mezzanines and automation?
Yes, these are commonly funded via asset or fit-out finance. Stage payments and bundled agreements are available with the right documentation. The building does not need to be mortgaged to fund these items.
What if I need to cover groundwork and electrical work?
Use an unsecured business loan to cover soft costs, alongside asset finance for equipment. Some lenders will also part-fund installation within a fit-out facility. Your project plan should allocate costs by type.
Are there grants available in the UK?
Depending on sector and region, you may find capital or energy-efficiency grants. Check DEFRA schemes, devolved government programmes, and local authority grants. Blending grant support with commercial finance can reduce total outlay.
Do you provide the loan directly?
No. Best Business Loans is an introducer that helps you find suitable lenders or brokers. You decide if you want to proceed with any provider we introduce. There’s no obligation to accept any offer.
Compliance and transparency
Important information
Best Business Loans does not offer property finance or commercial mortgages. We do not provide financial advice or lend money; we introduce you to third-party providers. All enquiries are subject to provider eligibility, affordability checks, and their terms.
Fair, clear and not misleading
We avoid promises of guaranteed approval or lowest rates. Borrowing costs, security requirements, and eligibility vary by provider. Late or missed repayments can affect your credit rating and may result in asset repossession for secured agreements.
Next step: Quick Quote
Tell us what you want to fund, your budget, and timing. Our AI will match your enquiry to relevant lenders and brokers. You can compare options and choose the route that fits your business.
About Best Business Loans
BestBusinessLoans.ai is an independent UK introducer that uses AI matching to connect established businesses with suitable commercial finance providers. We focus on non-property solutions including asset finance, fit-out finance, equipment finance, unsecured business loans, and invoice finance. Your data is handled securely and shared only with relevant partners for your enquiry.