Asset Finance

Asset finance provides flexible alternatives to allow businesses the capability to buy the vehicles, plant, equipment and other assets they need to operate.

Finance options such as contract hire or hire purchase mean that asset purchases can be funded without the need for a large upfront payment, helping to avoid cash flow disruption. Instead, affordable regular payments can be spread across an agreed hire period or until the value of the assets has been paid off and the business assumes full ownership.

How does it work?

Assets such as cars, HGVs, equipment and plant machinery are often essential to the day-to-day functioning of a business. Although they usually need to be purchased quickly, most business do not have the working capital to pay for them all at once upfront.

Contract hire allows you to lease the asset, paying only for the duration of its use. Under a contract hire agreement maintenance and management of the asset are handled for you, providing the benefit of the asset without any of the associated hassle. The most popular asset sourced via contract hire arrangements is company vehicles, though other items can also be obtained this way.

Under a hire purchase scheme, after all of the regular payments have been made the asset belongs to the business. Payment generally takes the form of an initial deposit followed by an agreed number of monthly or quarterly installments.

Advantages

Asset financing avoids the large upfront payments associated with purchasing expensive business assets, usually requiring a minimal initial outlay and spreading the cost and reducing strain on cash flows.

Spreading payment across the life of the asset means they can be financed from business revenues, paying for themselves as they are used. The repayment rates can also be fixed, adding certainty to budgeting.

There is a significant level of choice available to businesses when securing asset finance, meaning highly competitive rates can be secured. For help arranging a financing deal or to discuss your options please contact us by telephone, fax or email.