Asset finance is a type of finance that allows you to buy the equipment your business needs without the upfront cost – whether that’s new machinery, technology or vehicles.
Asset finance is an alternative to a traditional loan, it allows you to pay a fixed monthly amount to use the asset over an agreed time period.
Options include hire purchase or finance leasing, depending on whether you wish to own the asset at the end of the finance term.
It may also be possible to refinance existing assets to provide a cash injection for your business.
Benefits of asset finance
- Improve cashflow by spreading the cost of buying the asset
- Get new equipment fast
- Avoid depreciation risks
- Easy to budget – fixed monthly costs
- Doesn’t affect other credit lines
- Maintenance can be included (dependent on the asset)
- Possible tax advantages – dependent on your circumstances