Understanding equipment finance and asset-based lending, in plain terms.
De Lage Landen Leasing GmbH explains how businesses use equipment finance and asset-based lending to acquire machinery, vehicles, and fleets — the structures, the terminology, and the questions worth asking before you approach a lender.
De Lage Landen Leasing GmbH is a publisher of general information. We are not a lender, broker, or financial institution, we do not process applications, and nothing on this site is an offer of credit or a paid service. Read our Terms of Service for details.
What equipment finance and asset-based lending actually mean
Two terms that are often used loosely, and are worth telling apart before reading further.
Equipment finance
Arrangements — loans or leases — used to acquire physical business equipment: machinery, vehicles, IT hardware, or medical devices, typically repaid over the useful life of the asset.
Asset-based lending
Financing secured against a company's existing assets — receivables, inventory, or equipment — rather than solely against cash flow or credit history.
How they differ
Equipment finance funds a specific purchase; asset-based lending unlocks working capital against what a business already owns. The two are sometimes combined.
Equipment categories this resource covers
We organise our explainers by asset class, since underwriting, depreciation, and typical structures vary between them.
Construction & heavy machinery
Excavators, cranes, and earthmoving equipment with long depreciation schedules.
Commercial vehicles & fleets
Delivery vans, trucks, and logistics fleets financed individually or as a portfolio.
Manufacturing & CNC equipment
Production-line machinery, robotics, and tooling used in manufacturing.
How a typical equipment finance conversation unfolds
Every lender's process differs, but most conversations follow a broadly similar shape.
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STEP 01
Define the asset and its use
Lenders typically want to know what is being financed, its expected working life, and how it will be used in the business.
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STEP 02
Review financial standing
Business financials, existing obligations, and — for asset-based structures — the quality of receivables or inventory are assessed.
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STEP 03
Compare structures
Loans, finance leases, and operating leases carry different implications for ownership, tax treatment, and balance sheet presentation.
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STEP 04
Read the terms carefully
Covenants, early-repayment terms, and residual value assumptions are worth understanding before signing anything.
We publish information. We do not arrange financing.
De Lage Landen Leasing GmbH does not accept applications, quote rates, or refer businesses to lenders. If you are evaluating equipment finance or asset-based lending, we recommend speaking with a licensed financial adviser or a lender directly.
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