Asset Finance

Asset finance is a flexible funding option. Give your business access to the assets it needs to perform and grow. Asset finance allows this without compromising cash flow.

Financing your assets

Cash flow is the lifeline of every business. And, strong cash flow will help you grow your business.

By taking advantage of asset finance you can free up cash flow. And, you can have low monthly payments. Let us help you fund the assets you need to run your business.

Firstly, you can buy brand-new equipment for your business. In addition, you can release cash from owned assets by refinancing.

Types of asset finance we have available

Hire Purchase

Hire Purchase is an asset finance option where the business obtains ownership. So, legal title transfers when you pay all payments. This includes the purchase payment.

Also, you can defer part of the cost with a Balloon Payment. Here we offset a portion to the end of the agreement. We base this on the value of the asset at the end of the agreement.

Benefits

  • Fixed monthly cost
  • Ownership at the end of the agreement
  • Flexible contract
  • Balloon Payment option
  • Low initial outlay
  • Business capital not tied up in a depreciating asset
  • Finance not subject to VAT
  • Interest reclaimable against tax
  • Writing down allowance

Finance Lease

Finance Lease is a flexible asset finance option. Finance Lease is ideal for a business looking to handle asset management. Also, you show the asset on your balance sheet, which is an advantage.

Furthermore, Finance Lease is a VAT-beneficial option. You can pay the whole asset cost over the lease period. Also, you will pay the interest charges. Or, you can lower the monthly cost by adding a final balloon payment. For this, we base the balloon payment on the expected resale value.

Benefits

  • Minimum capital expenditure
  • Accurate monthly budgeting
  • A fixed interest rate is available on all contracts
  • No damage recharge as you are responsible for disposal of the asset
  • VAT recovery on the lease rentals (subject to 50% block)
  • Corporation tax relief available against the lease rental charges
  • Rentals can be offset against the businesses profits

Operating Lease

Like Finance Lease, with Operating Lease you to rent the asset while you need it. But, there is a difference between the two. Unlike Finance Lease, an Operating Lease is for part of the asset’s life. As a result, you pay a reduced rental. The cost is the difference between the purchase and expected resale value.

You get full use of the asset for as long as you need it. And, you avoid the burden of disposing of it. Also, you avoid having to recoup its residual value.

Benefits

  • Quick access to the asset you need with a low initial outlay
  • Full use of the asset without having to buy it outright
  • Option to re-rent, buy or return the asset at the end of the term
  • Reduced rental cost based on a percentage of the original capital cost
  • Off balance sheet funding
  • Reclaim VAT on rentals

Why choose Asset Funding UK?

We have access to many lending partners. As a result, we can fund any business purchase. Also, we offer refinancing of current assets at competitive rates.

Fast, flexible underwriting for new and established businesses. After all, we work with all industries. So, let’s drive your business forward with asset finance.

Industries we work with