Hard vs Soft assets

When looking at using Asset Finance, it is important that you think about the nature of the assets you are looking to acquire, or your existing assets you are looking to refinance against.

Assets can be put into two main categories: hard assets and soft assets. Knowing which category your asset falls into is the first step as although a majority of lenders will fund against most hard assets, it could be more difficult to acquire finance against a soft assets. Here at Ultimate Finance, we will only fund against hard assets for example.

Hard assets

Hard assets are most commonly high value items required to keep your business moving. They also provide a strong security for lenders as they tend to retain value for many years. They could include the following:
– Vehicles (cars, trucks, buses and coaches, agricultural machines such as tractors, etc)
– Machinery
– Plant equipment
– Engineering equipment

Soft assets

Soft assets may prove more difficult to acquire through Asset Finance as they tend not to provide as much security as a hard asset. Their value is usually lower, and they could hold barely any value if none at all by the end of the facility’s terms.
They could include the following:
– Computer hardware or software
– Office furniture (chairs, desks, printers)
– Electronics
– Telecoms
– Epos equipment
– Audio visual equipment

Please note Ultimate Finance provides Asset Finance for hard assets only. If you are unsure whether your asset is deemed hard or soft, please do not hesitate to contact us to discuss your requirements.