Asset Finance
Full use of the equipment your business needs, with flexible options at the end of the term. Often lower monthly payments than hire purchase, with the ability to earn from the asset's sale value.
Instead of purchasing the asset outright, the lender purchases it and leases it to your business for an agreed period. You pay regular rentals for full use of the asset, with the rental period tailored to your cash flow.
Throughout the lease you are responsible for the asset — insuring it, maintaining it, using it. The key difference from Hire Purchase is that legal ownership does not transfer automatically at the end.
At the end of the lease you have three options: continue into a secondary rental period at a reduced rate, arrange the sale of the asset and retain an agreed share of the proceeds, or return the asset entirely.
Rentals are typically lower than hire purchase payments because you are not financing full ownership.
Payment profiles can be tailored to align with how and when revenue flows into your business.
If you arrange the sale at the end, you receive an agreed share of whatever the asset sells for.
VAT-registered businesses pay VAT only on monthly rentals rather than the full purchase price.
Return the asset and move to newer equipment at the end of the lease period.
Depending on your accounting treatment, a finance lease may keep the asset off your balance sheet. Speak to your accountant.
The right structure depends on your tax position, cash flow, and how long you plan to keep the asset. A Business Finance Review takes all of this into account before we present options.