Forklift and warehouse equipment finance keep goods moving, keep cash in the business
Whether you need one counterbalance truck for the yard or a fleet of reach trucks and new racking for a bigger unit, we help you spread the cost so the warehouse runs without draining working capital.
- Diesel, gas and electric
- Racking and shelving too
- New and used trucks
- 100+ lenders compared
Nexgen Business Finance Limited is a credit broker, not a lender, and an Appointed Representative of AFS Compliance Limited, authorised and regulated by the Financial Conduct Authority (FRN 625035).
How does forklift and warehouse equipment finance work?
Forklift finance lets your business use new or used lift trucks, reach trucks and other warehouse equipment now and pay for them in fixed instalments, typically over two to five years. The trucks usually act as security, and racking or shelving can often be funded alongside them as part of a wider warehouse project.
Warehouse equipment is easy to underestimate. A single electric reach truck with its battery and charger is a significant purchase, and moving into a larger unit can mean new trucks, pallet racking, mezzanine storage and dock equipment all at once. Finance lets you spread that cost so you can take on the new contract or bigger premises without holding back on stock or staff.
Lenders tend to treat forklifts and racking differently. A forklift is a mobile asset with a strong used market, so it is usually straightforward to fund. Racking, shelving and installation are harder to recover and resell, so some lenders will only fund them alongside other equipment, or will look more closely at your accounts. As a broker, we know which lenders on our panel are comfortable with each, and we can structure a mixed warehouse package accordingly.
Forklift suppliers often offer their own rental or contract hire deals that bundle in servicing. These can suit some businesses, but it is worth comparing them with hire purchase or a finance lease, where you choose your own maintenance arrangements and, on hire purchase, own the trucks at the end.
Key features
Electric trucks and batteries
Electric forklifts, lithium-ion or lead-acid batteries and chargers can usually be funded together.
Full warehouse fit-outs
Combine trucks with racking, shelving, mezzanines and dock equipment in one funding plan.
New and used trucks
Fund new trucks from dealers or used ones with service history, subject to lender checks.
Single truck to fleets
Add one forklift or replace a whole fleet, with agreements that can be staggered.
Fixed monthly costs
Predictable payments make it easier to price storage and handling contracts.
Potential tax relief
Forklifts and warehousing equipment may qualify for capital allowances; check with your accountant.
What businesses use it for
- Counterbalance forklifts for yards and loading bays
- Reach trucks and very narrow aisle trucks
- Electric and powered pallet trucks and stackers
- Pallet racking, shelving and mezzanine floors
- Batteries, chargers and charging areas
- Order pickers and telescopic loaders for builders' merchants
Supplier rental vs hire purchase for forklifts
| Supplier rental or contract hire | Hire purchase | |
|---|---|---|
| Ownership | The supplier or funder keeps it | You own it after the final payment |
| Servicing | Often bundled into the rental | Arranged and paid for separately |
| Upfront cost | Usually low | Deposit, often nil to 20% |
| Flexibility | Hours limits and return conditions may apply | Use it as you need; sell or keep at the end |
| Best for | High-use fleets you replace on a cycle | Trucks you plan to keep for many years |
Running costs to budget for
Forklifts are lifting equipment, so the law sets inspection requirements on top of normal servicing. HSE guidance explains that thorough examination of industrial lift trucks is required under LOLER for the lifting parts, such as the mast, chains and forks, and under PUWER for other safety-related items, such as brakes, steering and tyres. HSE says the lifting parts should be examined at least every 12 months, or every six months if the truck is used to lift people, unless a written examination scheme sets different intervals.
When you compare finance options, add these examinations, servicing, battery replacement and operator training into the monthly cost. A cheaper used truck can cost more over the term if it needs frequent repairs.
Tax: what GOV.UK says
GOV.UK lists warehousing equipment such as forklift trucks, pallet trucks, shelving and stackers among the plant and machinery that may qualify for full expensing. Full expensing is only available to companies, and only on new and unused assets. Sole traders, partnerships and buyers of used trucks may be able to use the Annual Investment Allowance, which is £1 million. Please speak to your accountant before relying on any allowance.
What lenders typically look at
- Supplier quotes for trucks, batteries, racking and installation
- Business bank statements, typically the last three to six months
- Latest filed accounts or tax returns, plus management accounts if available
- Details of contracts, customers or the reason for the expansion
- Director or owner details for identity and credit checks
- Lease or ownership details for the warehouse, where racking is fixed
Things to consider
- The equipment is normally security for the agreement. If repayments aren't kept up, the lender may repossess it, and you could still owe any shortfall.
- Directors or owners may be asked for a personal guarantee, particularly where racking or installation costs are included.
- Racking and installation have limited resale value, so some lenders may want a larger deposit or stronger accounts to fund them.
- Check that your building, floor and aisles suit the trucks and racking before committing.
- Total cost depends on the term, deposit, asset age and your credit profile; a longer term usually means paying more overall.
Sources checked
Information checked on . General information only, not financial, legal or tax advice. Finance is subject to status and lender approval.
- GOV.UK – Spring Budget 2023: full expensing (examples of qualifying plant)
- GOV.UK – Full expensing and 50% first-year allowance
- GOV.UK – Annual Investment Allowance
- HSE – Thorough examination of lift trucks
- HSE – Equipment and machinery FAQs (LOLER)
- HSE – Thorough examination of lifting equipment (INDG422)
From enquiry to funding
Tell us what you need
A two-minute enquiry or a quick call.
We search 100+ lenders
Matched to high-street, specialist and niche lenders.
Get a decision
Options and terms, often within hours.
Sign and get funded
E-sign and funds are released.
Ongoing support
Same account manager for future funding.
What our clients say
Loading Google reviews…
Reviews supplied by Google Maps in relevance order, without a star-rating filter. The API returns a selection, not the full history.
Forklift and warehouse equipment finance questions
Can I finance a used forklift?
Often, yes. Many lenders will fund used forklifts from dealers, particularly well-known makes with service history and reasonable hours. Older trucks may be limited to shorter terms.
Can racking be funded on its own?
It can be, but it is harder than funding trucks because racking is costly to remove and resell. Some lenders will only fund it as part of a wider package, and others will look closely at your accounts. We can tell you which approach is more likely to work.
Is it better to rent forklifts from the supplier or buy them on finance?
It depends on how hard the trucks work and how long you plan to keep them. Supplier rental can bundle in servicing and suits high-use fleets replaced on a cycle, while hire purchase often suits trucks you will keep for years. We can lay the figures side by side.
Can a new warehouse or logistics business get forklift finance?
It's possible. Lenders will look at your experience, contracts and personal credit, and may ask for a deposit or personal guarantee. A signed customer contract can make a real difference.
Can I release cash from forklifts I already own?
You may be able to through sale and leaseback or asset refinance, depending on the trucks' age and value. The lender will usually want a valuation and details of any finance still outstanding.
Is Nexgen a lender?
No. We are a credit broker, not a lender. We introduce you to lenders on our panel, help with the application and explain the offers, and any finance is subject to the lender's own checks and approval.
Other ways to fund your business
Not quite the right fit? We arrange every major type of business finance and can compare options side by side for you.
Asset finance
£5k – £10m · 1 – 8 yearsSpread the cost of equipment, machinery and technology and keep cash in the business.
Find out moreHire purchase
£5k – £10m · 1 – 7 yearsSpread the cost of equipment and vehicles and own them at the end.
Find out moreUsed equipment finance
£3k – £2m+ · 1 – 5 yearsSecond-hand machinery from dealers, auctions and private sellers, funded with the right lender.
Find out moreSale and leaseback
£25k – £5m+ · 1 – 5 yearsSell equipment or vehicles to a lender and lease them back to release cash.
Find out morePlant and machinery finance
£5k – £5m+ · 1 – 7 yearsFund excavators, telehandlers, production machinery and more, new or used.
Find out moreCommercial mortgages
£100k – £10m+ · 1 – 30 yearsBuy or refinance business premises and commercial investment property over the long term.
Find out moreNot sure which is right for you? Tell us what you need and we'll recommend the best option.
Helpful guides
Equipment Finance for UK Businesses
Explore equipment finance options for UK businesses.
Read the guideSolar Panel Financing for Warehouses
Explore commercial solar PV funding for UK warehouses.
Read the guideInvoice Finance for Logistics, Transportation & Haulage
Explore UK haulage and logistics invoice finance.
Read the guideReady to see what you could borrow?
Two minutes online, no obligation, and no effect on your credit score. A specialist will come back with real options from 100+ lenders.