Asset Finance FAQs

Asset finance allows businesses to acquire or refinance assets like vehicles, machinery, or equipment through tailored financial agreements.

The lender purchases the asset on behalf of the customer, who repays the cost over time through fixed payments.

Vehicles, machinery, IT equipment, office furniture, agricultural equipment, and more.

Hire Purchase, Leasing (Operating and Finance), and Asset Refinancing.

Yes, asset finance is designed to help businesses of all sizes preserve cash flow and access essential assets.

With hire purchase, you own the asset at the end of the agreement. Leasing provides access to the asset for a fixed period without ownership.

Yes, asset refinancing allows you to unlock capital tied up in existing assets.

A finance lease covers most of the asset’s useful life, while an operating lease is shorter and typically involves returning the asset at the end.

Businesses, sole traders, partnerships, and sometimes individuals, depending on the asset and lender criteria.

A good credit history helps, but some lenders provide options for businesses with poor or limited credit.

Identification, financial statements, bank statements, asset details, and business plans (if applicable).

Creditworthiness, financial stability, asset type, and intended use of the asset.

Yes, but they may need to provide additional guarantees or deposits.

Missed payments could result in penalties or repossession of the asset, depending on the terms.

Yes, many lenders offer solutions tailored for sole traders and self employed individuals.

Typically, 10-20% of the asset value, but some agreements may require no deposit.

Interest rates vary based on the asset, credit profile, and lender policies. Rates are often fixed for predictability.

Most asset finance agreements offer fixed payments.

• Hire Purchase: You own the asset after the final payment.
• Lease: Options may include returning the asset, extending the lease, or purchasing it.

Reputable Brokers will disclose all fees up front, including set up fees, administration charges, or early repayment penalties.

Yes, but early repayment fees may apply, depending on the terms.

VAT treatment depends on the agreement type and whether the business is VAT registered.

Most agreements offer flexibility, typically ranging from 12 to 84 months.

Yes, many lenders finance new and used assets, subject to age and condition.

Maintenance responsibility depends on the agreement type. Operating leases often include maintenance packages.

Some agreements, particularly leases, allow mid-term upgrades.

Yes, you can usually select your preferred supplier, subject to lender approval.

Yes, fleet financing is a common application of asset finance.

You must insure the asset. Insurance proceeds are typically used to settle the finance agreement.

Lease payments are typically deductible as business expenses. Hire purchase agreements may offer capital allowances.

AIA allows businesses to deduct the full cost of qualifying assets up to a certain limit from taxable profits.

Hire purchase and finance lease assets typically appear on your balance sheet; operating leases do not.

Yes, comprehensive insurance is usually required as part of the agreement.

Applications are usually processed within a few days, but complex cases may take longer.

Reputable Brokers provide regular updates throughout the process.

Funds are typically released directly to the asset supplier after the agreement is finalised.

Cancellation terms vary, but most agreements allow early termination with fees.

The lender may repossess the asset or require early settlement of the agreement.

Some lenders specialise in imperfect credit finance but may require higher deposits or interest rates.

Yes, refinancing can lower payments or release equity tied up in the asset.

Yes, flexible agreements can align repayments with seasonal cash flow.

Brokers offer access to multiple lenders, providing tailored solutions and competitive rates.

Brokers earn a commission from the lender, and all commissions should be disclosed as part of the finance agreement documentation.

A good Broker will explain why and suggest alternative solutions.

Yes, finance Brokers in the UK should be regulated by the Financial Conduct Authority (FCA).

Extensions are possible, particularly for leasing agreements.

Some agreements allow novation, where obligations transfer to another party.

Early termination fees or refinancing options may apply.

Yes, businesses can finance multiple assets under one or separate agreements.

Always work with a reputable Broker, compare offers, and ensure transparency about fees and terms.