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Asset Finance

We can help you to get the right Asset Finance.

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Asset finance is a type of lending that enables you to access business assets such as equipment, machinery and vehicles without having to buy them upfront. It can also allow you to release cash from the value in assets you already own or use your existing assets as security against a business loan from an asset finance lender.

Business asset finance is typically attractive to businesses who want to put their growth plans into action but don’t necessarily have the ready cash, or business owners who would rather spread large costs over a longer period.

Short-term asset finance also enables businesses to remain competitive by making it easier for them to access the latest technology. Asset finance is a broad category that relates to valuable items in your business.

Generally speaking there are two types of asset finance — lending secured against existing assets, and equipment finance to get additional assets.

Depending on the type of asset finance, the borrower can eventually take on full ownership of the asset, return it to the lender or lease a newer version.

Asset finance includes:

  • Equipment leasing

  • Hire purchase

  • Finance leases

  • Operating leases

  • Asset refinance

An ‘asset’ can be almost anything, whether it’s ovens and refrigeration for a catering company or a haulage firm’s fleet of vehicles — and with a wide choice of alternative lenders across the market, you can find asset finance for almost anything.

How asset finance works

Asset finance works in a few different ways, depending on which type of asset finance you opt for. Hire purchase works by enabling you to spread the cost of purchasing an asset over a set amount of time. Once you’ve paid the lender in full, the asset is yours to keep.

Equipment leasing, on the other hand, works by the lender buying the asset and you paying a monthly fee to rent it. At the end of the agreed term, you can extend the lease, pay the remaining balance to buy it, upgrade to a new model or return the asset back to the lender.

Asset refinance allows you to release cash into your business using your existing assets. You can also use it to consolidate debt or provide security when structuring a deal. Depending on your situation, lenders will typically lend up to 80% of your asset’s value.