Fund the assets your business needs without draining your cash reserves
Most businesses need equipment, vehicles or machinery to operate. The question is not usually whether to acquire them, but how. Paying for an asset outright, ties up cash that could be used elsewhere in the business. Asset finance allows you to spread the cost of the purchase over time, so the asset is working for the business while you are still paying for it.
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Asset finance can also work in the other direction. If you already own assets with value, it may be possible to refinance them and release cash back into the business without selling them.
What can Asset Finance be used for
Asset finance is used across a wide range of industries and asset types. It is not limited to manufacturing or large equipment. If the business needs it to operate and it holds some value, it can usually be financed.
Vehicles and Transport
Vehicles and commercial transport, including cars, vans, trucks and trailers.
Machinery and Engineering
Manufacturing and engineering machinery and equipment.
Construction and agricultural plant
Plant and machinery for construction, agriculture and earthworks.
Catering and hospitality equipment
Kitchens, appliance and equipment for hospitality businesses.
IT, software and technology
It systems, software, hardware and business technology.
Healthcare and medical equipment
Medical and scientific devices, diagnostics and healthcare.
Print, packaging and production equipment
Print packaging and production equipment.
Gym, beauty and fitness equipment
Fitness, leisure, beauty and sporting equipment.
Renewables and environmenta
Solar, storage and other environmental technologies.
Both new and second-hand assets can usually be financed. We work with lenders who understand the specific sectors and asset types relevant to your business.
The asset finance options we can arrange for you
There are several structures within asset finance and the differences matter. The right one depends on whether you want to own the asset at the end of the agreement, how you want to account for it, and what suits your cash flow.
Hire Purchase
You pay for the asset in regular instalments over an agreed term. At the end of the agreement, once all payments have been made, ownership of the asset transfers to you. During the agreement, the lender technically owns the asset, but you have full use of it.
Hire purchase suits businesses that want to own the asset outright at the end of the term, and who want the certainty of fixed monthly payments throughout. It is commonly used for vehicles, machinery and equipment that the business intends to keep for the long term.
Finance Lease
The lender buys the asset and leases it to you for an agreed period. You make regular payments for the use of the asset, but you do not own it at the end of the term. At the end of the primary lease period, you typically have the option to continue leasing at a reduced rental, return the asset, or in some cases sell it on the lender's behalf and retain a share of the proceeds.
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One practical advantage of finance lease is the VAT treatment. VAT is spread across each rental payment rather than being due in full upfront, which can help with cash flow, particularly on higher-value assets. A Finance lease can suit businesses where ownership is less important than having access to the asset. It is worth taking advice from your accountant on the accounting treatment before deciding between lease and hire purchase.
Asset refinance
If your business already owns assets with value, asset refinance allows you to release cash from them without selling. The lender effectively buys the asset and leases it back to you, freeing up capital while you retain full use of the asset.
This can be useful when a business needs working capital or wants to fund a specific opportunity but does not want to take on unsecured debt. It can also be used to refinance existing asset finance agreements where the current terms are no longer suitable.
Educational funding
Schools, colleges, universities and other educational organisations often need to fund equipment, technology, furniture or specialist facilities. Educational funding works on similar principles to standard asset finance but is designed specifically for the requirements and procurement processes of education sector organisations.
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We work with lenders who understand the education sector and can structure facilities appropriately for public and private institutions.
Is Asset finance right for your situation?
Asset finance is likely to be right if:
You need to acquire equipment, vehicles or machinery and want to spread the cost.
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You want to preserve working capital rather than pay for an asset upfront.
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You already own assets and want to release cash from them.
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You are in the education sector and need to fund equipment or technology.
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You have a significant software or technology investment to make .
Asset finance may not be the right starting point if:
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You need money in the business for general purposes rather than a specific asset - business finance may be more appropriate.
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The asset has limited value or a very short useful life, which may make it difficult to finance
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You need to fund a property purchase or development - property finance covers this .​
What lenders look at for asset finance
Asset finance decisions are based on a combination of the asset itself and the financial position of the business. Because the asset acts as security for the lender, the type, age and condition of the asset all matter alongside the usual business financial information.
The Asset
Type, age, condition and value
New or Second hand
Whether the asset is new or second-hand
Financial position
Turnover, profitability, cash flow and credit history
Use of the asset
The purpose of the asset and how it will be used in the business
Supplier
Credibility of the supplier
Every case is different. We get to know your business, understand what the asset will do for you and structure the finance to support your cash flow and your goals.