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What Can Asset Finance Be Used For?

  • Vehicles: Cars, vans, trucks, and fleet vehicles.
  • Machinery: Manufacturing, construction, and agricultural equipment.
  • Technology: IT systems, software, and communication equipment.
  • Specialised Equipment: Medical devices, engineering tools, or renewable energy systems.
Contract hire cars

Benefits of Asset Finance:

  1. Improves Cash Flow: Businesses can acquire necessary assets without a large upfront investment, preserving working capital for other operations.
  2. Flexibility: Payment terms, deposits, and agreements can often be tailored to suit business needs.
  3. Tax Efficiency: Depending on the type of finance, payments and capital allowances may offer tax advantages.
  4. Up to Date Assets: Leasing agreements allow businesses to upgrade to newer models or technology, maintaining operational efficiency.
  5. Access to Funding for SMEs: Asset finance is often easier for small and medium sized enterprises (SMEs) to secure additional finance compared to traditional loans.
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Who Uses Asset Finance?

Asset finance is popular among:

  • Small and Medium Enterprises (SMEs) looking to expand without straining cash reserves.
  • Large Corporations needing scalable financing options for expensive assets.
  • Industries such as construction, transportation, manufacturing, healthcare, and agriculture.

Key Features of Asset Finance:

Access to High Value Assets: Asset finance allows businesses to acquire costly assets that might otherwise be unaffordable, enabling them to scale operations and stay competitive.

Repayment Over Time: Instead of making a lump sum payment, the cost of the asset is spread over an agreed period, typically through fixed monthly payments.

Ownership or Usage Options: Depending on the type of asset finance agreement, businesses can either:

  • Take ownership of the asset at the end of the agreement (e.g., Hire Purchase).
  • Use the asset without owning it (e.g., Leasing).

Secured Financing: The asset itself usually acts as security for the loan, which reduces the need for additional collateral.
 

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Types of Asset Finance

Hire Purchase (HP)

Hire Purchase (HP) is a popular asset finance option in the UK that allows businesses and individuals to acquire assets by spreading the cost over time.

Key Features

The business pays for the asset in instalments over time. Ownership transfers once the final payment is made.

Suitable for businesses that want to own the asset in the long term.

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Finance Lease

A finance lease is a type of asset finance agreement where a business can use an asset, such as vehicles, machinery, or equipment, for most of its useful life without owning it

Key Features

Full Asset Usage

Fixed Monthly Payments

Options at End of Term

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Asset Refinancing / Capital Release

Businesses can unlock cash tied up in existing assets by using them as collateral for a loan or refinancing an existing agreement.

Key Features

Unlocks Liquidity

Retain Asset Usage

Flexible Repayment Terms

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Operating Lease/Contract Hire

An operating lease, also known as contract hire, is a type of asset finance agreement where a business rents an asset for a fixed period without the intention of owning it.

Key Features

No Ownership

Fixed-Term Rental

Low Monthly Payments

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Green Finance

Enables businesses to invest in environmentally sustainable assets, such as renewable energy systems, electric vehicles, and energy-efficient technologies, supporting the transition to a low-carbon economy.

Key Features

Environmentally Focused

Access to Incentives

Ownership Remains with Lessor

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Consultancy Support

We provide expert asset finance consultancy services tailored to meet the needs of businesses across a wide range of industries.

Unlock Smarter Asset Financing

Tailored Solutions

Hassle-Free Process

Access to Top Lenders

Cost Efficiency

Consultancy Support

Asset finance is a vital tool for businesses aiming to grow or improve operations while maintaining financial flexibility. By spreading the cost of assets over time, companies can invest in the equipment and technology they need to thrive without depleting their cash reserves. Whether for vehicles, machinery, or specialised equipment, asset finance offers tailored solutions for businesses of all sizes.