Asset Finance

Asset finance can be used to help purchase a piece of equipment, machinery, technology, or vehicles that can be critical to the future success and growth of a business.

It can also be used to refinance existing assets that the business already owns in order to raise capital. Asset finance can help you keep cash in your business as opposed it being tied up in a depreciating asset.

We provide a range of flexible funding options including hire purchase, leasing and refinancing, enabling you to purchase assets to grow your business or unlock working capital. Asset finance is one of the most popular funding solutions available.

Types of

Asset Finance

Hire purchase

Traditionally, the most popular form of asset finance is because at the end of the term the asset is owned outright with the asset being noted on the company balance sheet. The company puts down a deposit to show their commitment, although in some circumstances a deposit may not be required. The company must pay the VAT at the outset. Capital and interest are paid over the term of the agreement with terms up to 7 years potentially available. Sometimes a residual balloon payment can be agreed at the outset which in turn reduces the monthly repayments.

Finance lease

This differs from hire purchase in that ownership of the asset remains with the finance company and the finance company rent the asset to the business over a specified period of time. At the end of the initial agreement, the business has the option to buy the asset by paying a ‘Secondary Period Rental’ or return it and lease a newer version. VAT payments are spread over the term of the agreement and the monthly leasing payments can be claimed as an allowable business expense.

Operating lease

With an operating lease, the company benefits from the use of the asset over a pre-determined term without ever actually owning the asset. The company therefore benefits by negating all the risk associated with owning the asset, such as depreciation. The finance company will take all the risk of the future value of the asset. This enables you the full use of the asset throughout the agreement with the added benefit of a built-in residual value, thus reducing your monthly rentals.

Asset Refinance

If you need an injection of cash for any reason, then asset refinance maybe a viable option. Asset refinance can assist with restructuring the entire business or just as simply, a way of freeing up some working capital through the equity contained within assets the business owns. An asset refinance package can be a fast solution for unlocking valuable cash to help your business grow, without interruptions to company operations.

Speak to one of our experienced commercial managers about asset finance for your business.

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