Armada asset finance review

Armada was founded in 1974 to support established and start-up businesses. The company offers asset finance solutions, funding all types of equipment for all types of business.

An overview of Armada business loans

Armada is focused on offering asset finance agreements to companies, as outlined below:

Asset finance

Asset finance is a way for companies to acquire essential assets to help run and grow their business. Typically, these assets include equipment, machinery and vehicles, but Armada is happy to accept a whole range of alternative assets, including unusual and intangible ones.

Some of these assets have included computer hardware, coffee machines, soft play equipment, and gym equipment.

Buying equipment and machinery outright can be expensive and is often unaffordable for new businesses. Asset finance enables you to make smaller, more manageable payments over a pre-agreed term, so that you can access the equipment you need without putting pressure on cash reserves.

There are several different types of asset finance, including hire purchase and leasing. Depending on the type you choose, you may need to put down an initial deposit for the asset you require and then borrow the remaining amount. You repay this amount over the set term, plus interest and fees, and at the end of the agreement you might own the asset outright, be able to purchase or return it, or renew the agreement.

Some agreements also allow you to upgrade your equipment regularly, meaning you always have access to the most modern and efficient equipment and machinery to help your business grow.

It’s important to check whether it’s yours or the lender’s responsibility to maintain the equipment during the agreement term.

What is Armada’s typical interest rate?

The amount of interest you pay will depend on several factors including the type of asset you’re acquiring and its value, as well as the type of agreement you sign up to and the length of the term.

It will also depend on your business credit history, the size of your business and its annual turnover. You may pay more if your business is new and has a limited credit history, while you may secure a more favourable interest rate if you can show your business has a healthy balance sheet and a solid credit record.

How much can I borrow with an Armada business loan?

You can typically borrow anywhere between £2,000 and £250,000 with Armada asset finance. According to Armada’s case studies, one company borrowed £4,000 for new barista coffee machines, while another borrowed £150,000 for a multi-unit hospitality venue.

However, the exact amount you can borrow will depend on the type of asset you need and its value, as well as your business credit history and annual turnover, and any existing debt.

What is the acceptance rate for an Armada business loan?

Armada doesn’t publish acceptance rates, but in general, you’re likely to find it easier to get accepted if you meet the eligibility criteria, have a good credit score and strong financial record, and you complete the application honestly and accurately.

If you can provide the relevant information and documentation to prove you can afford the repayments, you’re more likely to qualify.

Eligibility criteria and whether you qualify

To be eligible to borrow with Armada asset finance, you’ll typically need to be a UK-registered business and pass the necessary fraud and credit checks.

Depending on the terms of your agreement, you may need to meet a minimum annual turnover threshold. However, because your loan is secured against the asset you’re acquiring, it’s generally easier to get accepted for asset finance that other forms of borrowing, even if you’re a new business. Armada also states that thanks to its human underwriting, it is more likely to agree to your proposal.

Additional information

When applying for asset finance with Armada, it’s essential that you read the terms and conditions thoroughly and pay particular attention to the following:

Early repayment fees

You may be able to terminate your agreement early, but if you do so you will likely pay an early repayment charge. It’s important to know how much this is as fees can be high and you may be better off waiting until the end of the term instead.

How long does it take to get approved?

Armada aims to give an approval decision on the same day as your application, though this may vary depending on the complexity of the situation and the specific asset.

Estimated time to receive funds

Once your application is approved, you should receive your funds within a day or two. The faster you can provide all the necessary information, the quicker the process will be.

Can a loan be repaid early?

You may be able to repay your loan early, but a fee will likely apply so be sure to check well in advance.

Is security required?

Yes, your loan will be secured against the particular asset you wish to acquire for your business. This can make it easier to qualify for asset finance, but keep in mind that if you fail to meet your repayments, your asset could be at risk.

What documentation is required

When applying for asset finance with Armada, you’ll need to provide the necessary information and documentation.

Business information

You’ll usually need to supply certain business information, including your business’s registered company number, business name and company address.

For established businesses, you must also provide a completed asset finance proposal form, permission for Armada to conduct credit searches, recent bank statements and the latest full accounts and up-to-date management accounts if available.

For new companies, you must provide a completed asset finance proposal form, permission for Armada to conduct credit searches, a business plan if available, and bank statements evidencing working capital.

Business owner information

You must also provide personal information for all business owners, such as names, addresses and email addresses. You will need to show proof of ID and address.

Funding requirement

As part of the application process, you will be asked to state how much you wish to borrow and for which type of asset.

How to apply for an Armada business loan

If you’re ready to apply for asset finance with Armada, you’ll need to complete the enquiry form on its website, email proposals@armadaassetfinance.com or phone 01392 879599.

A member of the team will then get back to you to discuss your requirements and options.

Is the application process different to other lenders?

Unlike some lenders, particularly those on the high street, you won’t be able to apply directly online with Armada. Instead, you must request a call back so that your requirements can be discussed in full. The good news is that this shouldn’t slow down the application process as Armada says it can usually give you a decision the same day. It also helps ensure you’re getting the right type of funding for your business.

How to improve your chances of getting funded

The key to getting funding is to provide Armada with all the relevant details and documents as quickly as possible. It can also help if you have a strong financial record and can show that you can comfortably meet your repayments.

Although a good credit history can increase your chances of getting funding, Armada will consider this alongside a range of other factors before deciding whether to accept your proposal – this means you’re more likely to get accepted even if you’re a new business with a limited credit history.

Pros & cons of an Armada business loan

Pros

Asset finance enables you to spread the cost of essential business equipment
You don’t necessarily need perfect credit to get accepted
Approval is often the same day
You may be able to upgrade your equipment regularly

Cons

Armada only offers asset finance, so it won’t suit all businesses
Fees may apply
You can’t apply directly online
Asset finance is more expensive than buying the asset outright

Alternative funding options for different lenders

If asset finance isn’t the right funding choice for your business, there are plenty of alternative options from other lenders. These include:

Why use a finance broker?

Using a finance broker can save you both time and effort when it comes to searching for the right funding option for your business. A finance broker has access to a broad panel of lenders and can match you with those most likely to accept your loan application. This can be useful if your business only recently started trading or if you’ve had problems with debt in the past.

A good broker will also explain fees clearly and help you with your application. Just keep in mind that some brokers charge for their services, so be sure to confirm these costs upfront.

Get started with Swoop's business funding platform

Our team at Swoop would be happy to discuss your business funding requirements with you to help you find the right deal to support your application and help your business grow.

Armada business loan review: Interest rates, eligibility, and the application process