Asset Finance

What is Asset Finance?

Asset finance allows businesses to acquire essential assets—such as machinery, vehicles, or technology—without paying the full cost upfront. Instead, they pay over time through manageable instalments, enabling better cash flow and financial planning.

Key Features of Asset Finance

Financing Options: Choose between hire purchase, leasing, or refinancing existing assets.
Cash Flow Management: Spread the cost of equipment or vehicles over time to preserve working capital.
Tax Benefits: Payments can often be offset as business expenses.
Flexibility: Upgrade or replace equipment easily without large capital outlays.
Improved Balance Sheet: Keep liabilities off your balance sheet with certain financing structures.

Types of Asset Finance

Finance Lease: Pay to use the asset without ownership; return or renew at term end.
Operating Lease: Short-term rental option for assets with frequent upgrades (like tech).
Hire Purchase (HP): Gain ownership after the final payment while spreading costs.
Asset-Based Lending: Borrow against owned assets to raise capital.
Sale and Leaseback: Sell assets to a lender and lease them back to free up cash flow.

Benefits of Asset Finance

Preserves cash flow and working capital.
Provides potential tax advantages on payments and allowances.
Grants access to the latest technology and equipment.
Flexible, customizable payment terms and agreements.
Reduces risk of asset obsolescence through leasing options.

Frequently Asked Questions (FAQs)

What is asset finance used for?

Asset finance is used to acquire business-critical assets such as machinery, IT systems, vehicles, or office equipment without large upfront payments.

Do I own the asset during the finance term?

It depends on the type of agreement. Under a hire purchase, you’ll own it after final payment. With a lease, ownership remains with the financier.

What are the tax benefits of asset finance?

Payments made under leases or hire purchase agreements may be tax-deductible, helping reduce your company’s taxable profits.

Can I upgrade assets during the term?

Yes. Many leasing arrangements allow businesses to upgrade or replace assets to keep up with technological advancements.

Is asset finance suitable for small businesses?

Absolutely. Asset finance is especially beneficial for SMEs that need to preserve cash while accessing high-value equipment or vehicles.

Bridging Finance

Property Development

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Growth Guarantee Scheme

Secured Business Loan