Asset Finance
Asset finance is a huge part of every business. Whether it’s a new desktop for the office, a new company car or a crane, lenders love to finance assets.
That’s why you will find most lenders offer asset finance at very competitive rates. Lenders prefer newer assets as they tend to hold their value longer. There are also specialist asset finance providers that can cater for the likes of boats, helicopters and aeroplanes.
Types of Asset Finance available:
- Hire Purchase
- Finance Lease
- Refinance existing assets to release working capital
- Finance with Balloon payment
Terms Available
- Duration 12 months to 7 years
- Facility £5,000 to £1,000,000
- Purpose Asset Financing
- Decision 48 Hours
Steps to Apply for Business Funding
Apply Online
Complete our simple online application form in just a few minutes with basic details about your business.
We will contact you
Our dedicated UK-based specialists will review your application and discuss your specific funding requirements.
Get Decision
Receive a fast credit decision, usually within 24-48 hours, keeping downtime to an absolute minimum.
Receive Funds
Once approved, funding is transferred quickly to your business account so you can start growing right away.
How Asset Finance Supports Stability
A company typically utilises asset finance when it needs to acquire essential equipment, vehicles, or machinery without depleting its liquid cash reserves. Rather than paying the full cost upfront, the business spreads the expense over the asset’s useful life, ensuring that the timing of the investment aligns with the revenue the asset generates.
Asset finance helps maintain stability by preserving working capital for day-to-day operational needs. It allows businesses to upgrade to more efficient technology, replace ageing hardware, or expand production capacity without straining their bank balance. This approach also provides predictable monthly outgoings, making long-term budgeting and financial planning much simpler.
In short, using asset finance helps maintain a healthy balance sheet and supports sustainable growth, ensuring the business remains well-equipped and competitive without compromising its cash security.
FAQs
Why use asset finance if the company is profitable?
While a business may be profitable, purchasing high-value assets outright can severely deplete cash reserves. Asset finance allows a company to preserve its "rainy day" fund for operational emergencies or marketing, while the equipment effectively pays for itself through the revenue it generates over time.
When is asset finance most useful?
- Technology Upgrades: Staying competitive without massive capital outlay.
- Fleet Expansion: Adding vehicles to meet new contract demands immediately.
- Budget Certainty: Replacing unpredictable repair costs with fixed payments.
- Tax Efficiency: Potentially offsetting payments against taxable profits.
How does borrowing help with "growth opportunities"?
Asset finance facilitates scalability. If a business wins a large contract requiring doubled production capacity, it can acquire the necessary machinery straight away. Because the cost is spread out, the increased income from the new contract usually covers the finance instalments, allowing for faster growth than saving up to buy equipment.
What is the risk of not using finance for major purchases?
The primary risk is capital depletion. Spending entire cash reserves on a single asset leaves a business vulnerable to "liquidity shocks." Furthermore, relying on ageing, inefficient equipment to avoid spending cash can lead to higher maintenance costs and lost productivity, putting the business at a competitive disadvantage.