What is Asset Finance?

Get the equipment your business needs without the large upfront costs.

For many businesses, accessing the required equipment to operate can be a costly affair. This needn’t be with an Asset Finance facility – you can access the funding you need to secure the asset and repay through instalments to protect your cashflow.

Why choose Asset Finance?

Acquiring hard assets for your business can be a major pressure point on your cashflow. Businesses in the transport and haulage industry for example often need to replace their fleet of vehicles, which can be very costly. Manufacturing companies rely on expensive machines to keep their business moving, and one faulty piece of equipment can quickly create many issues.

With an Asset Finance facility, you can borrow the funds you need to purchase your assets and spread the cost over monthly repayments rather than having to part with much needed working capital from the outset.

What assets are eligible?

Most hard assets that are used for business purposes will be eligible through an Asset Finance facility:

• Vehicles (cars, trucks, buses and coaches, agricultural machines such as tractors, etc)
• Machinery
• Plant
• Equipment

In some cases, premises such as buildings and warehouses can also be considered a hard asset. However, a Bridging Loan might be better suited when it comes to purchasing property.

Some lenders will also consider finance soft assets. Soft assets are items with a limited lifespan and will depreciate much quicker. These can include:

• Software
• IT equipment
• Office furniture (desks, chairs, computers, etc)

Who is Asset Finance for?

Asset Finance facilities can be the right type of funding for businesses looking to purchase costly items, whether they are a limited company, a sole trader or a partnership. It’s a great way to protect your cashflow as your monthly costs remain the same for the duration of your agreement, enabling you to carefully plan your expenses relating to the asset.

Our clients span across all sizes, from SMEs to larger companies, and all industries and sizes:

• Transport and haulage
• Agriculture
• Manufacturing
• Construction
• And many more

What are the main benefits of Asset Finance?

• Minimum to no upfront costs when purchasing the assets you need for your business
• It lets you spread large costs across manageable and fixed monthly payments
• The asset can serve as the security for the loan
• It protects your cashflow from a common major pressure point
• The interest rate is usually lower than for a business loan or overdraft

How much does Asset Finance cost?

Facilities include a fixed interest rate which is dependent on several factors including the amount borrowed and the repayments duration. Your monthly repayments will remain the same each month to ensure you can best plan your expenses and protect your cashflow.