Asset finance is a secured term loan (hire purchase and leasing), which is used to finance business equipment. You can breakdown the payment for your assets into monthly, bite-sized chunks. This makes the investment much more affordable and has less of an impact on your cash flow. It also allows you to develop and grow your business without experiencing hold-ups while you wait for the cash available to make the purchases you need.
It is used to finance office and manufacturing equipment, yellow goods, cars and most other types of business assets. It is an alternative type of funding for SME’s and can provide significant cash flow and tax benefits for businesses looking to acquire new equipment.
Asset finance is a valuable alternative to conventional bank loans, and is typically secured on the asset being financed. Often at the end of the loan term the business has the option to replace or update the equipment on finance.