Asset finance allows businesses to acquire or use essential assets – like vehicles, machinery, and equipment – without paying the full purchase price upfront.

Instead, you agree a structured payment plan that aligns the cost of the asset with the revenue it helps generate.

Common asset-finance structures include:

Hire Purchase (HP):

• You pay fixed monthly installments over an agreed term.
• Legal ownership transfers to you after the final payment.
• Ideal if you plan to retain the asset long term.

Finance Lease:

• You make rental payments for the right to use the asset.
• The lender retains ownership, often including maintenance in the agreement.
• At term end you can upgrade, extend the lease, or return the asset.

Operating Lease:

• Shorter-term hire, treated as an operational expense rather than debt.
• Payments may sit off your balance sheet, improving financial ratios.
• Offers tax advantages if lease rentals qualify as allowable expenses.

Sale and Leaseback:

• You sell owned assets to a financier, then immediately lease them back.
• Releases cash tied up in existing equipment while you retain full use.

Key benefits:

• Conserve cash: Preserve working capital for operations and growth.
• Predictable budgeting: Fixed repayments simplify forecasting and cash-flow management.
• Access to technology: Upgrade equipment without high upfront costs.
• Tax efficiency: Lease payments can often be deducted against profits.
• Balance-sheet flexibility: Operating leases may not appear as liabilities.

Typical agreement terms run from 1 to 7 years, depending on the asset and lender.

Approval is based on your business credit profile, financials, and the specific asset’s condition and value.