Types of Asset Finance
There are three main variations of Asset Finance, each with their own benefits. If you are unsure which type is best to help you meet your business ambitions, our team of experts will help you assess your options and find the right funding for you.
With Hire Purchase, the lender advances you the funds to acquire the asset but retains ownership of the purchase and leases it to your business against fixed monthly repayments. This option usually entails a larger initial payment and smaller monthly repayments each month. Once the agreement ends, you can choose to purchase the asset with a further payment.
With Lease Financing (also known as leasing), the funder will purchase the asset and lease it to you against monthly payments over an agreed period. However, you will not have the option to purchase the asset at the end of your agreement – you may be able to extend the lease if necessary, upgrade against another similar item or return it to your provider.
Refinancing allows you to use your existing assets against funding. In simpler terms, it lets you access the cash that’s tied up in your assets to boost your cashflow. It can be provided on both Lease Financing and Hire Purchasing – even if you have money still left to pay.