Server finance
Replace ageing on-premise hardware and pay for it across the years it will actually serve you, rather than out of one quarter of cash flow.
Whole-of-market — 60+ lenders searched, including
Can you finance a server?
Yes, and a server is one of the easier pieces of IT to place. It is a tangible, serialised, rack-mounted asset that stays where it is installed, which means a funder can identify it and, in the worst case, recover it. Agreements are usually hire purchase or lease, written against the business. Used servers are occasionally funded where they come through a reputable reseller with a warranty, but many funders still decline them. The detail people miss is that the invoice is rarely just hardware — migration, licensing and professional services often make up a large share, and those elements are unrecoverable and assessed accordingly.
Used kit: Yes, unusually for IT. Refurbished enterprise servers supplied by an established reseller with a warranty can be funded, though the choice of funders narrows and the condition and support position are looked at closely.
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What would a server cost per month?
Business asset finance is quoted on a flat rate, so that is what this shows — with the equivalent APR underneath, because the two are not the same number. A quick guide only; your actual rate depends on the asset, term, deposit and lender.
Representative example: on Hire Purchase, borrowing £25,000 over 48 months at a 6.0% flat rate (equivalent to 11.5% APR representative), you would repay around £646 a month; total amount repayable approximately £31,000, of which £6,000 is the cost of finance. This calculator is for illustration only — it is not a quote or an offer of finance, and the rate and repayments you are offered will depend on the asset, term, deposit and your circumstances. CW Asset Finance is a credit broker, not a lender, and may receive a commission from the lender that funds your agreement. All finance is subject to status, affordability and lender approval. CW Asset Finance is an Appointed Representative of Rural Finance Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 630701).
How lenders treat it
A server is about as close to a hard asset as IT gets, and I underwrite it more comfortably than most technology. It is identifiable by serial number, it is bolted into a rack, and there is a genuine refurbished market through the channel. I still will not pretend the recovery is strong — by the time I need it, the generation has moved on and the drives have to be wiped. So the decision remains a covenant one, with the hardware as useful supporting comfort. What I look at closely is the split on the invoice. If most of the value is consultancy, data migration and licensing rather than metal, I am lending unsecured and I will assess the business on that footing.
Makes and models we fund
Examples of the machines we are asked to fund. This is not an exhaustive list — if what you are buying is not here, it does not mean we cannot fund it. Your supplier quote is what the agreement is written against.
| Machine | What it is |
|---|---|
| Dell PowerEdge R660 | Single-unit dual-socket rack server |
| Dell PowerEdge R760 | Two-unit dual-socket rack server |
| Dell PowerEdge T560 | Tower server for smaller sites |
| HPE ProLiant DL360 Gen11 | Single-unit rack server for virtualisation |
| HPE ProLiant DL380 Gen11 | Two-unit rack server for virtualisation |
| HPE ProLiant ML350 Gen11 | Tower server for branch offices |
| HPE Alletra Storage Server | Server with integrated storage software |
| Lenovo ThinkSystem SR650 V3 | Two-unit rack server for virtualisation |
| Lenovo ThinkSystem ST650 V3 | Tower server for small offices |
| Supermicro rack servers | Configurable rack servers built to order |
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Who buys one
Manufacturers, law firms, healthcare practices and logistics operators running line-of-business applications that will not move to a public cloud, either for cost, latency or data-control reasons. The usual trigger is hardware falling out of manufacturer support, a failed drive that exposes how old the box really is, or an insurer or client requiring infrastructure that is still patched. Businesses consolidating several ageing servers onto one virtualisation host also come to us, because that project carries a real cost in one go.
Get a quoteor call 07581 364281
We publish the deals we arrange, with no client named and no rate quoted. See what we have funded in IT and office equipment.
How it is treated for tax
Bought on hire purchase, business plant and machinery normally qualifies for capital allowances on the full cost even though you pay for it monthly, which is a large part of why hire purchase is the common structure. On a finance lease you generally set the rentals against profit instead. The rules change between budgets and your position depends on how you trade, so treat this as the direction of travel and get your accountant to confirm the detail before you commit.
Server finance questions
Can you finance a server and the installation together?
Yes, and it is the normal request. Racking, cabling into the cabinet, migration work and configuration usually go onto the same agreement as the hardware. Be aware that the services portion carries no recovery value for the funder, so a project weighted heavily towards professional fees will be judged more on your accounts than on the equipment.
We are half in the cloud already. Does a hybrid setup still get funded?
Yes. Hybrid is now the common pattern and funders see it constantly. The on-premise hardware is financed as equipment in the usual way, and the cloud element is treated as a service cost that some funders will allow to be bundled. A clear breakdown from your supplier makes the application straightforward.
What happens to the old server when the new one goes in?
That is your decision rather than the funder’s, unless the old unit is itself on an existing agreement, in which case it needs settling or returning first. Tell us if it is, because the outstanding balance on legacy kit is one of the most common reasons a new application stalls late in the process.
Is a server easier to finance than laptops?
Generally yes. It is fixed in place, individually identifiable, and has a functioning refurbished market, so a funder has something tangible behind the agreement. That widens the number of lenders willing to look and gives us more room to negotiate, although your trading record still drives the outcome.
Can we include a support contract in the finance?
Often yes, where the support is bought up front as part of the same purchase rather than billed annually. Bundling manufacturer support alongside the hardware is common practice and most funders accept it. Ongoing monthly managed service fees, by contrast, are an operating cost and sit outside the agreement.
Get a quoteor call 07581 364281
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See everything we fund in IT and technology finance →
Not an offer of finance. All finance is subject to status, affordability and lender approval.
Get your quote
Tell us what you’re looking to fund and Conor will come back to you personally — usually the same day.
Prefer to talk? Call 07581 364281 · serving Leeds, York, Harrogate, Wakefield, Selby, Tadcaster & across North & West Yorkshire.