Plain-English answers about how specialist asset finance actually works.

Last Mile Capital is a UK specialist asset-backed lender. We originate, underwrite, and service finance facilities for businesses buying, selling, or operating productive assets, secured against tangible, serialised collateral. We focus on seven sectors: agriculture, aesthetic medical, cycle and motorcycle, leisure, urban last mile, transport and haulage, and renewable energy. Our customers include manufacturers, dealers, operators, clinics, and fleets in the sectors we know. Unlike a broker, we are the lender on the agreement: the credit decision, the documentation, and the ongoing relationship all sit with us.

Last Mile Capital is the trading name of Last Mile Solutions Limited, a private company registered in England and Wales (company number 16461576) at 167-169 Great Portland Street, 5th Floor, London, W1W 5PF. You can verify this on Companies House at find-and-update.company-information.service.gov.uk. We lend to limited companies, partnerships, and other commercial borrowers; we are not authorised by the Financial Conduct Authority and do not provide consumer credit.

We focus on seven sectors where we have practical underwriting experience and where serialised assets, structural demand, and operational complexity make specialist knowledge a real advantage: agriculture (tractors, combines, robotics), aesthetic medical (lasers, IPL, RF, body contouring), cycle and motorcycle (e-bikes, mopeds, motorcycles, parts), leisure (caravans, motorhomes, marine, hospitality), urban last mile (vans, e-cargo, micro-mobility fleets), transport and haulage (HGVs, trailers, telematics), and renewable energy (solar, battery storage, EV charging, heat pumps). Sector specialism matters because residual values, tax treatment, and route to remarketing differ widely; one size does not fit all.

We are not a deposit-taker and we are not trying to cross-sell current accounts or general SME products. We write asset finance, and only asset finance, secured against serialised, tangible collateral in sectors we know. That focus lets us underwrite on the specific asset, end use, and operator profile, rather than a generic SME score. Decisions are made by people who have built and run businesses in these sectors, supported by data, not by an algorithm in isolation. The result is faster credit decisions, sharper structures, and a lender who already understands the operating model when the conversation starts.

Neither, strictly speaking. We are a specialist asset-backed lender. We are not a bank: we do not take deposits, and we do not hold customer money. We are not a broker: we are the lender on your agreement, not an introducer placing your deal with someone else. The capital we deploy comes from senior wholesale facilities provided to us by institutional funding partners; we then lend that capital directly to our customers, secured against the assets we fund. The practical point for a business customer is simple: when you sign a facility with Last Mile Capital, Last Mile Capital is your counterparty.

Under hire purchase (HP) the customer pays an initial deposit, then fixed monthly instalments, and takes title to the asset on payment of an option-to-purchase fee at the end. The asset sits on the customer's balance sheet from day one and capital allowances are usually claimed by the customer. Under a finance lease the funder retains legal title throughout. The customer pays rentals over a primary period and may continue to use the asset for a peppercorn rent in a secondary period or sell it as agent for the lessor. VAT treatment differs: HP is VAT on the asset price up front, finance lease is VAT on each rental.

An operating lease is a rental arrangement where the funder retains the residual risk on the asset. Rentals are usually lower than HP or finance lease for the same term because part of the asset's cost is left in the residual value. The asset typically goes back to the funder at the end. Operating leases suit operators who want predictable monthly cost, do not want second-hand asset disposal risk, and are happy to upgrade rather than own (for example, vans on a five-year refresh cycle, or aesthetic devices that depreciate quickly with technology cycles).

Sale and HP back is a refinance structure where you sell an asset you already own to the funder, then buy it back over time on hire purchase. It releases cash tied up in the existing asset while you keep using it day to day. It is often used to fund growth, smooth a working capital gap, or restructure a balance sheet. The funder will valuate the asset, apply a loan-to-value haircut, and set a term that respects expected residual life. Existing finance on the asset must be settled out of the proceeds.

A balloon is a single, larger payment scheduled at the end of an HP or lease agreement. Setting a balloon reduces the monthly cost during the agreement, because part of the capital is deferred. At the end of the term you can settle the balloon in cash, refinance it onto a new agreement, or in some structures hand the asset back. Balloons need to be set carefully; they should reflect the realistic market value of the asset at that point, not just be used to flatter the monthly figure.

On HP and lease, the asset itself is the primary security: the funder holds title (lease) or a charge equivalent (HP) until the agreement is settled. Depending on the size and risk of the deal, additional security may be requested: a debenture over company assets, a personal guarantee from a director, a guarantee from a parent company, or in some project structures a charge over contracts and accounts. We tell you up front what is being asked for and why, before you sign.

Talk to us early. Most funders can accommodate sensible changes if they are raised before arrears build up: payment holidays, term extensions, restructures, partial settlements or asset substitution. Doing nothing is usually the worst option, because missed payments trigger default fees and credit file impact. If the business genuinely cannot continue with the agreement, we can often help arrange a voluntary surrender or a sale of the asset to clear the debt. We would rather work the problem with you than chase it through arrears.

Three things drive your rate: the funder's cost of money, the credit risk of your business, and the asset risk (how easy the asset is to remarket if things go wrong). Funder cost of money typically tracks SONIA or the Bank of England base rate plus a funding spread; you can see the current Bank Rate at bankofengland.co.uk. On top of that the funder adds a margin to cover credit risk, operations and profit. Stronger covenants, lower loan-to-value, and higher residual asset values all bring the rate down.

Fees vary by deal, but a typical structure includes a documentation fee charged by the funder at drawdown (often 150 to 750 GBP depending on facility size), and in some cases an arrangement or option-to-purchase fee at the end of the agreement. We disclose every fee in writing before you sign. We do not take undisclosed kickbacks; any commission we earn from a funder is set out in the proposal documents and is also disclosable on request.

Usually not. On most deals our remuneration comes from the funder, not the customer, and is built into the funder's pricing. On larger or more complex transactions, particularly project finance, we may agree a separate advisory or arrangement fee with the customer. If we do, the fee is set out in writing before any work starts, and you have the right to walk away. We do not charge customers an up-front non-refundable fee just to consider an enquiry.

For straightforward deals on standard assets with a clean credit profile, an indicative decision usually comes back within one working day, and full credit approval within two to five working days once we have the supporting paperwork. Larger, more complex deals (project finance, multi-asset facilities, weak or short trading history) take longer because the credit committee reviews them in detail. We tell you up front whether your deal is in the fast track or the slow track, and we update you when something changes.

For most deals up to about 100,000 GBP we can work from a credit application, the last two filed sets of accounts (or management figures if you are mid-year), recent business bank statements (typically three to six months), and proforma invoices for the asset. Above that, expect to provide management accounts, an aged debtor and creditor list, a cashflow forecast, and asset-specific documents (logbooks, MOTs, service history, energy yield reports for renewables). Personal guarantees, where required, may need a director's statement of personal position.

It runs in five stages. One: discovery call, where we understand the asset, the operator and the timeline. Two: indicative terms, where we set out structure, rate range and fees. Three: full credit submission, where the funder underwrites the deal. Four: documentation, where signed agreements and supporting paperwork are returned. Five: drawdown, where the funder pays the supplier (or you, on a refinance) and the agreement starts. We project-manage all five, so you have a single point of contact rather than chasing the funder yourself.

Once credit is approved and documents are signed and returned, drawdown to the supplier typically happens within one to two working days for straightforward deals. Where the asset still needs to be inspected, registered, fitted with telematics, or where logistics are complex (for example, a piece of plant arriving from overseas), drawdown moves to the date the asset is on hand and conditions precedent are satisfied. We work back from your delivery target so the funding is ready when the asset is, not after.

Two full filed sets of accounts is the comfortable starting point for most funders. We can still place start-ups and businesses in their first year, but the deal usually needs more support: a stronger deposit, a personal guarantee, a parent company guarantee, or a clear asset that can be remarketed easily. Your pitch matters here. A first-year clinic with a clear pipeline of bookings and a known operator looks very different to a cold start in an unproven market. We help you frame that story for the funder.

Sometimes, but it depends on the type and recency of the adverse data. Old, satisfied defaults or a single late payment from years ago are usually not deal-breakers. Active CCJs, bankruptcies, or unresolved director disqualifications are much harder. We do not bury this; we ask early so we can route the deal to a funder with the right risk appetite, or tell you honestly that we cannot place it. A clear conversation up front saves weeks of false hope.

Five things. One, a recognisable asset with a clear secondary market. Two, an operator who knows the sector and has run the asset before. Three, end-customer demand or contracts that support the cashflow. Four, a sensible loan-to-value, usually with a deposit between zero and twenty per cent for new and ten to thirty per cent for used. Five, accounts that show enough headroom to service the payment, typically a debt service coverage ratio comfortably above one. None of these alone is enough; together they make a fundable case.

We act as an originator and servicer. We bring sector flow, credit-paper the deal, and manage the customer relationship across the agreement life. Funders provide the capital and set the credit appetite. We can work block discount, forward flow, dedicated facility, or pure introducer arrangements depending on the funder's structure. Reporting is monthly at minimum and includes obligor-level performance, asset performance, arrears bucketing, and remarketing outcomes where applicable. We are happy to operate within a funder's existing systems or our own.

Every deal goes through documented underwriting, independent KYC and AML checks under the Money Laundering Regulations 2017 (as amended), sanctions screening against the UK Sanctions List published by the Office of Financial Sanctions Implementation, and asset due diligence where appropriate. We operate a credit committee, a defined delegated authority matrix, and an audit trail that funders can review under standard NDA. We can provide our governance pack on request.

We can share anonymised origination, conversion and performance data by sector, asset class and vintage, subject to NDA and data protection. For renewable energy specifically, we reference public benchmarks from sources such as NESO (the National Energy System Operator), Ofgem, Modo Energy and the Department for Energy Security and Net Zero. For transport and last mile, we reference data from Transport for London (Direct Vision Standard, ULEZ), the Department for Transport, and the SMMT (Society of Motor Manufacturers and Traders). We do not share customer-identifiable data without consent.

No. Last Mile Capital is not authorised by the Financial Conduct Authority. We provide finance facilities to limited companies, partnerships, and other commercial borrowers; this activity sits outside the scope of FCA regulation. We do not provide consumer credit. Where a specific request would fall within FCA-regulated activity (for example, a sole trader or small partnership where the borrowing is regulated under the Consumer Credit Act), we will refer the customer to an authorised firm rather than arrange the agreement ourselves.

It depends on who the borrower is. Agreements with limited companies are generally not regulated. Agreements with sole traders, individuals, and partnerships of three or fewer partners can be regulated by the Consumer Credit Act 1974, depending on the amount and purpose. For an unincorporated borrower with a borrowing of up to 25,000 GBP for non-business purposes, the agreement is typically regulated. We tell you in writing whether your agreement is regulated or unregulated before you sign, and what that means for your rights.

If you are unhappy with how we have arranged or managed your facility, raise a complaint with us in writing at hello@lastmilecapital.co.uk. We will acknowledge it promptly, investigate, and respond in writing. Most of what we do is commercial B2B asset finance for limited companies and partnerships, which sits outside the scope of FCA regulation; the right route to challenge an outcome you disagree with is the courts, or any dispute resolution clause set out in your finance agreement. We aim to resolve issues through dialogue first.

We process personal data in line with the UK GDPR and the Data Protection Act 2018. We collect what we need to assess and run your agreement, share it with funders and credit reference agencies on the lawful basis of legitimate interest and contract performance, and keep it for the periods required by law and good practice. Our privacy notice on the website explains your rights of access, rectification, erasure and objection, and how to contact our data protection lead. You can complain to the Information Commissioner's Office at ico.org.uk if you remain unhappy.

The FCA's Consumer Duty applies to retail financial products and services for retail customers, which broadly means consumers and some sole traders and small partnerships. It does not generally apply to facilities provided to limited companies and larger SMEs. Last Mile Capital is not authorised by the FCA and does not provide consumer credit; the Consumer Duty therefore does not apply to the facilities we arrange. You can read more about the standard at fca.org.uk under Consumer Duty.

We carry out customer due diligence under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. This includes verifying the identity of the business and its beneficial owners (anyone holding more than 25 per cent), screening against the UK Sanctions List published by OFSI, and assessing the source and purpose of funds. We may ask for ID, proof of address, and confirmation of company structure. These checks are required by law and are not negotiable; we cannot complete a deal without them.