Unlock the value of your business assets or acquire new equipment and vehicles without the upfront cost. Asset finance lets you spread payments over time, improving cash flow while keeping your business moving forward.
Asset finance is a flexible funding solution that allows businesses to acquire essential equipment, vehicles, or machinery without the need for large upfront payments. It can also help release cash tied up in existing business assets, improving cash flow and operational flexibility.
With asset finance, businesses can spread costs over time through structured agreements, often with the option to purchase the asset at the end of the term.
Common types of asset finance include:
By leveraging existing assets, businesses can unlock capital tied up in property, land, or equipment. For new purchases, asset finance provides a cost-effective way to access vital resources while maintaining financial stability.
What type of assets can be financed?
Business assets that can be financed through asset funding include:
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Asset finance typically spans between one and seven years, allowing businesses to spread the cost of an asset while making manageable repayments at an agreed interest rate. For higher-value assets, financing terms can extend beyond seven years.
The duration of an asset finance agreement is flexible, depending on factors such as the asset’s lifespan, the business’s repayment preferences, and the lender’s terms.
This flexibility ensures businesses can choose a repayment period that aligns with their financial strategy and operational needs.
A lot of businesses just don’t have the cash flow required for big asset purchases, which is where asset finance solutions can help. Whether you are financing a vehicle, machinery, or commercial equipment you firstly need to decide which method of asset-based finance is best for you and your business.
Maybe you are looking to release cash tied up in an existing piece of equipment or vehicle - in this case then you would look towards straight-forward asset refinancing. Or, you may need access to new business assets in which case you have more choice. There are several ways to acquire the business assets you need without incurring significant upfront costs.
Within asset finance, there are two main types of funding. The first is borrowing to access additional assets, the second is a form of secured business loan that allows you to borrow against existing business assets. Within these broader categories, the main types of asset-based finance include:
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