Asset finance is a way for a business to purchase equipment needed, such as machinery, vehicles, technology etc and spread the cost over monthly fixed payments, rather than paying a large lump sum upfront.
Why Do Businesses Use Asset Finance?
Because Asset Finance Can Allow Businesses to:
- Protect Cash Flow
Avoid large upfront payments and keep money available for wages, stock and operating costs. - Access Equipment Quickly
Get the assets you need to start generating value straight away. - Flexible Repayments
Finance can be structured to match your cash flow and trading patterns. - Preserve Other Borrowing
Keep overdrafts and loan facilities available for working capital or future growth. - Budget with Confidence
Predictable monthly payments make financial planning easier.
What Can Be Financed?
Asset finance can be used to fund the purchase or lease of a wide range of high-value business assets:
- Vehicles & transport
- Plant & Construction machinery
- IT & technology equipment
- Office fit-out & furniture
- Specialist industry equipment – garages, catering, printing, health & beauty etc
Types of Asset Finance
- Hire Purchase: Buying an asset, like machinery or a vehicle, by making an initial payment and making monthly installments over a set period of time and then you own the asset when the last payment is made.
- Leasing: the business rents the asset for an agreed term for a fixed monthly payment, at the end of the lease, there are options available: return the asset, extend the lease or buy the asset from the lender.
- Asset Refinance: allows businesses to release cash against assets already owned.
Is Asset Finance Right for You?
Asset finance can work well if your business needs to:
- Grow or expand
- Upgrade equipment
- Manage seasonal cash flow
- Preserve working capital
- Have predictable costs
How First Business Finance Can Help
We work with a wide panel of UK lenders to secure competitive asset finance solutions, tailored to your business. Our team provides clear, fast and straightforward support throughout the process.
Get in touch on 01634 386869 or visit our calculator page here.
This blog is for information only and does not constitute financial advice. All finance facilities are subject to status, affordability checks and individual business circumstances. Failure to meet repayment obligations may put your business or assets at risk. First Business Finance is authorised and regulated by the Financial Conduct Authority (FRN: 685879).