What is asset finance?

Asset finance is basically a loan that is used to obtain equipment to meet your business requirements.

Whenever organisations invest in tangible assets, this is anything from office equipment to manufacturing plants or cars to a fleet of aircraft, they usually need an affordable, secure means of finance.

That’s exactly what the asset finance sector is all about. During these difficult financial times, Asset Finance has become the third most common source of finance for businesses in the UK, this is after bank overdrafts and loans. It is also of growing importance in the public sector.

Why use asset finance?

Asset finance can be a flexible alternative to a traditional bank loan, providing significant cash flow and tax benefits for businesses looking to purchase a new or used piece of equipment, a vehicle or other fixed assets.

Who Uses Asset Finance?

Asset finance accounts for the majority of debt-financed business investment.

Around one in three small businesses that have any external borrowing use asset finance. Amongst these, the use of asset finance is particularly high in Wales (54%), the North East (46%) and the North West (42%) with agricultural and manufacturing making most use of leased equipment.

Advantages

Asset finance is:

  • A valuable alternative to conventional bank loans
  • Secured wholly or largely on the asset being financed, reducing the requirement for additional collateral
  • Secure for the user, as the finance cannot be recalled during the life of the agreement
  • Sustainable because businesses have the option to replace or update equipment at the end of the lease period.
  • Widely available through a network of around 5,000 equipment dealers and 400 brokers, as well as direct from finance companies.

We have over 20 years worth of experience in the Asset Fiannce sector and can finance new or used equipment. We can place many more, even if bespoke. Transactions are always considered on their individual merits. Deposits, Period & Rates of Interest depend upon the strength of the proposal. We also deal anywhere in the UK!