When you need equipment to keep your business running, the last thing you want is to be hit with eye-watering upfront fees. But that's exactly what one of our logistics clients was facing: until broker Jodi Bailey stepped in.

This is the story of how the right finance product and the right broker saved a UK business nearly £1,000 in unnecessary costs.

The Challenge: High Fees and Higher Rates

Our client operates in the transport and logistics sector. Demand was increasing, and they needed a new forklift truck to keep pace with their growing workload.

They'd already started shopping around for finance. Several unsecured business loan providers had made offers, but the terms weren't pretty:

• Interest rates were higher than expected
• Upfront lender fees ranged from 5% to 10%
• A chunky cost due before the forklift even arrived

For a business managing tight cash flow, handing over more than a grand upfront just to borrow £12,000 wasn't ideal. It felt wrong. And it was.

The client knew there had to be a better way. That's when they reached out to SME Finance Hub.

The Broker's Approach: Matching the Right Product to the Need

Jodi Bailey, one of our experienced brokers, took the case. He listened to what the client actually needed: not just funding, but funding that made sense for their specific situation.

Unsecured loans can work well in some cases. But when you're borrowing to buy a physical asset like a forklift, there's often a smarter route: Asset Finance.

Why Asset Finance Made More Sense

Asset Finance (also known as Hire Purchase or HP) is designed specifically for buying equipment. The asset itself acts as security, which typically means:

• Lower interest rates than unsecured loans
• Smaller upfront fees
• Flexible repayment terms

Jodi knew this. He also knew which lenders specialise in this type of funding and offer fair, transparent terms.

He approached Close Brothers, a trusted specialist lender with a strong reputation in the asset finance space.

The Solution: A 5-Year Hire Purchase Deal

Within 48 hours, Jodi had secured approval for a 5-year Hire Purchase agreement with Close Brothers.

Here's how the deal broke down:

• Funding Amount: £12,000
• Term: 5 years (60 months)
• Product: Hire Purchase (asset funding)
• Asset: Forklift Truck

By spreading the cost over five years, the monthly repayments were kept low and manageable. The client could afford the payments without stretching their cash flow.

The real win? Structure and value.

Compared to the unsecured business loan offers they'd seen (with 5–10% lender fees), this Close Brothers asset funding came with no large upfront fee and a lower interest rate. More cash stayed in the business. Right where it belongs.

The Result: Lower Costs, Better Terms, Happy Client

The outcome speaks for itself:

• £12,000 funded for a critical piece of equipment
• No large upfront fee compared to typical unsecured loan lender charges
• Lower interest rate than the unsecured options
• 5-year term keeping repayments affordable
• Fast approval within 48 hours

The client got the forklift they needed, kept more cash in the business, and avoided the punishing fees they'd been quoted elsewhere.

Broker Spotlight: Jodi Bailey

Jodi Bailey has been with SME Finance Hub for nearly 2 years. He specialises in asset finance, working capital, and growth funding for small and medium-sized businesses across the UK.

His approach is simple: listen first, recommend second.

"A lot of business owners think they need a loan when what they actually need is the right type of finance for what they're buying," Jodi explains. "In this case, the client was looking at unsecured loans because that's what they'd been offered. But once we talked it through, it was clear that Hire Purchase was the better fit."

Jodi's experience with specialist lenders like Close Brothers meant he knew exactly where to go and how to structure the deal for maximum value.

That expertise helped the client avoid the kind of 5–10% upfront lender fees they'd been quoted elsewhere. And it's not a one-off. It's what happens when you work with a broker who knows the market inside out.

Why Asset Finance Often Beats Unsecured Loans for Equipment

This success story highlights a common mistake: applying for the wrong type of finance.

Unsecured business loans can be brilliant for working capital, stock purchases, or covering short-term cash flow gaps. But when you're buying equipment, vehicles, or machinery, asset finance is usually the smarter choice.

Lower Interest Rates

Because the asset acts as security, lenders can offer lower rates than they would on an unsecured loan.

Smaller Upfront Costs

As this case proves, upfront fees on asset finance deals are typically much lower: sometimes as little as a few hundred pounds.

Tailored Repayment Terms

You can structure the repayment period to match the lifespan of the equipment, keeping monthly costs manageable.

What You Can Learn from This Success Story

There are three key takeaways from this case:

1. Don't Accept the First Offer - Just because a lender has made you an offer doesn't mean it's the best deal available.
2. Match the Finance to the Purpose - Using the right product for the right purpose (like Asset Finance for a forklift) can save you thousands.
3. Work with a Specialist Broker - A good broker has access to 100+ lenders and knows which ones offer the best terms for your situation.

Speak to Jodi Bailey or another member of our team today at SME Finance Hub to get started.