What Is Asset Finance?

What Is Asset Finance?

What is Asset Finance?

Put simply, asset finance enables businesses to purchase the assets they need in order to put their growth plans into action, by leasing them through a lender. It provides an alternative to traditional loans in that an asset secures the finance agreement.

There are different types available based on a company’s needs and flexible repayment options, so there’s no immediate stress about finding upfront costs or impacting cashflow, whilst freeing up capital for other resources. It also allows you to unlock capital by refinancing existing assets; releasing cash that can be used elsewhere.

The different asset finance solutions

Deciding which option is best depends on your company’s current assets and requirements. Here are the options available:

Hire purchase – this enables you to spread the cost of the required asset over a set period, after which you will own it outright. They tend to have a fixed interest rate which can be useful for cashflow. For more information, check out our page on hire purchase.

Equipment leasing – if you don’t want to own an asset, you can rent it from a lender who will buy it and lease it back to you. This is a flexible option with monthly payments and a fixed interest rate. For more information, read our page on equipment leasing.

Asset refinance – if a you already have valuable assets, you can release some of the capital tied up in them to put towards other requirements. In this instance, a lender would buy the existing assess and lease it back. For more information, head to our asset refinance page.

Finance leases – also known as capital lease, this is a mix of equipment leasing and hire purchase. They tend to include a longer lease with smaller payments, whilst still having full access to the asset you need, when you need it.

Who is asset finance available to?

It can benefit businesses of any size and is available for both sole traders and limited companies. It can be especially useful for SME’s (small to medium enterprises) who are keen to grow and access up-to-date equipment.

What does it include?

The great part of asset finance is that the asset is decided by you and what you require. It can include multiple business expanding resources including:

  • Hard assets such as machinery, equipment, vehicles or property
  • Soft assets such as technology, software, catering, furniture or air-conditioning
  • Replacing outdated or broken equipment
  • Purchasing modes of transport
  • Refitting or expanding premises
  • So much more.

Can Busby Finance Help You?

With access to a wide panel of trusted lenders, we can help you stay ahead of the competition with bespoke asset finance solutions designed to ensure the smooth running of your operation. Our friendly, helpful Account Managers are here to answer any of your questions.

Contact Us!

We’d love to hear from you. Please let us know if there’s anything we can help with.