Tailored Asset & Equipment Finance solutions. Hire Purchase Finance and Leasing agreements available.

Asset-based financing, or equipment financing, is a type of lending that is used by UK businesses to acquire equipment, machinery, plant, vehicles, refurbish premises etc. The assets/equipment being purchased act as security to the lender on the facility being provided. 

There are a number of different asset-based financing options available, including hire purchase finance, finance lease and refinance. Hire purchase finance, is where you effectively spread the cost of an asset over an agreed period of time, with the option of ownership at the end of the term. This type of financing is ideal for businesses that need to acquire new resources or equipment but may not have the upfront capital to do so.

Hire purchase facilities are a type of asset finance in which you borrow money to buy the assets outright, but make monthly repayments like you would with any other loan.

Asset financing is a very flexible form of financing. It can be used for almost any legitimate business purchase and even for the fit out and refurbishment of a premises. Asset finance terms generally range from 1 – 7 years and can be obtained by any type of business; including but not limited to Ltd companies, Partnerships and Sole traders.

Yes – a limited company can get asset finance. The company will need to provide details of the assets being purchased and the terms of the finance agreement will be agreed between the company and the financier.

The main benefit of asset finance is that it can help a company to grow its business by providing funds to purchase new or used assets. The company will need to make regular repayments on the debt, but this can be offset against the profits generated by the new assets. This type of financing can be very helpful in times of uncertainty when traditional forms of finance, such as bank loans and overdrafts may not be available.

There are typically two types of costs involved in asset financing: administrations/documentation fees and interest rates. Administrations/documentation fees are one-time charges that are assessed by the lender in order to cover the costs associated with processing and approving a loan. Interest rates are charges that are assessed on a periodic basis in order to cover the cost of borrowing money.

Both origination fees and interest rates can vary depending on the lender, the amount being financed, and other factors relating to each individual case.

There can be a number of reasons why a business might apply for asset finance. Perhaps the company needs to purchase new equipment or vehicles in order to grow its operations, and it doesn’t have the cash available to make the purchase outright. Perhaps they need to replace or upgrade an outdated piece of equipment. Or maybe they have recently expanded into new premises and need to finance the entire fit out of the premises before taking possession. 

Whatever the reason, asset finance can be a great way for businesses to get the funding they need in order to expand and grow. The application process is usually pretty straightforward, and approvals are often granted quickly. So if you’re looking for a way to finance your business’ growth, asset finance might be a good option for you.