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.
There are two main types of asset finance:
Leasing
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
