Asset finance is an option that businesses can use to grow through the acquisition of new assets, ranging from machinery and equipment, vehicles and technology. You will pay a regular, monthly amount to use the asset over an agreed period of time, meaning you won’t have to take a chunk out of your working capital to pay for the asset outright.

Remember: when opting for hire purchase, your business will own the asset at the end of the agreement.

The most common type of asset finance is hire purchase (HP) which lets you spread the purchase cost of an asset, like a car or equipment, over a longer period with fixed regular payments. It can be flexible on the amount of your deposit and monthly payments to suit your business needs.

Other types of asset finance include: 

• Equipment leasing
• Finance lease
• Operating lease
• Asset refinance
• Contract hire

• Easier to obtain than traditional bank loans
• Fixed payments make budgeting and cash flow simple to manage
• Most agreements have fixed interest rates
• Failure to pay only results in the loss of assets, nothing more

Asset finance is designed for any type of business, from eligible limited companies, SMEs and partnerships, to sole traders and public limited companies. 

It’s targeted at those who wish to purchase an item that has high value to support their business’s growth but want to spread the cost of the item over its usable life.