Asset Finance

Asset Finance allows businesses to acquire assets like machinery, vehicles, or equipment by spreading costs over time rather than paying upfront, preserving working capital. Common uses include funding new technology, manufacturing machinery, and commercial vehicles.

Types of Asset Finance

The most suitable type depends on whether the business eventually wants to own the asset or simply use it for a fixed term.

• Hire Purchase: The business pays a deposit followed by fixed instalments. Once the final payment (and often a small "option to purchase" fee) is made, legal ownership transfers to the business.

• Finance Lease: The finance provider owns the asset and leases it to the business for most of its useful life. The business is responsible for maintenance and insurance. At the end, the business can often extend the lease or sell the asset and keep a share of the proceeds.

• Operating Lease: Ideal for equipment that needs frequent upgrading (like IT hardware). The business rents the asset for a short period, and the provider usually handles maintenance. The asset is returned at the end of the term.

• Asset Refinancing: A business sells an asset it already owns to a lender to unlock cash tied up on its balance sheet, then leases it back to continue using it.