Infographic: What is Asset Finance?

Infographic: What is Asset Finance? image

Asset finance is a popular choose with UK SME businesses who need to purchase high value equipment to help them grow. It usually involves the customer (lessee) paying for use of the asset over an agreed term. This helps the business to avoid buying it outright, eliminating large cash outflows.

Did you know? According to the Finance & Leasing Association (FLA), £33 billion worth of asset finance was provided to British businesses in 2018.

There are two main types of asset finance:


The leasing company purchases the asset on behalf of the customer. The customer pays a rental for the access and use of the new equipment, without owning it. The leasing company owns the asset.

Hire Purchase

Similar to leasing, the finance company purchases the asset on behalf of the customer. The customer regularly pays to use the equipment over a term specific term. The only difference is that the customer owns the asset after final payment is made.

Asset finance is available to all types of businesses

Asset finance is perfect for any business looking to acquire assets and is popular amongst industries such as Construction, Manufacturing, Engineering, Agriculture, Printing, Waste Management, Transport and logistics.

The key benefits of asset finance include:

  • Access to new equipment
  • Good for cash-flow
  • Tax advantage
  • Flexible funding option
  • Can be obtained quickly
  • Clear budget management

What is Asset Finance?

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About the author

Jamie Moorcroft Author
Written by Jamie Moorcroft | May 14, 2024

Money Writer, Director and Co-Founder

Jamie has over ten years of experience in the consumer and business finance industry, and with a background in graphic design, Jamie heads up the creative and design team at Capalona.

Updated: May 14, 2024
Published: February 08, 2016

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