Asset finance is a type of business financing that allows you to acquire the assets you need for your business, such as equipment, machinery, vehicles, or technology. You can spread the cost of the asset over a period of time, and the asset itself serves as collateral for the loan or lease. Asset finance has many benefits, such as improving your cash flow, giving you access to up-to-date technology, and offering tax advantages.
There are different types of asset finance available, depending on your needs and preferences. Some of the common ones are:
- Hire purchase: You pay a deposit and then monthly instalments until you own the asset.
- Equipment leasing: You rent the asset from the lender and pay a fixed monthly fee. You can return, upgrade, or buy the asset at the end of the lease term.
- Asset refinance: You use an existing asset as security for a loan and get a lump sum of cash. You can still use the asset while repaying the loan.
Asset finance is available from banks, specialist lenders, and finance brokers. You can apply online or through a broker who can help you find the best deal and guide you through the process. You will need to provide some information about your business, the asset you want to finance, and your financial situation. The lender will assess your eligibility and offer you a quote based on the interest rate, fees, and repayment terms.