Asset Finance

Asset finance is designed for the purchase of business assets, for example:

• cars and vans
• office equipment
• plant and machinery
• trains, planes and haulage

Basically, if the asset is moveable, identifiable and non-perishable, asset finance can normally be arranged for it.

The principal advantage of asset finance is that the lender will see its primary security being in the asset itself, which limits the call on other business assets that might already be pledged elsewhere e.g. under the terms of a mortgage debenture. Different types of asset finance also have different tax treatments and one can be more advantageous than other depending upon your position.

There are many different types of asset finance, but they can be broadly categorised into two different types:

• hire purchase - which operates much like a business loan and title is transferred to the borrower when the final repayment is made
• leasing - where the asset is effectively rented to the borrower for an agreed period of time and then returned or sold at the end. Title is retained by the leasing company until the asset is sold.

There are various twists on these two products and you are likely to hear terms such as: conditional sale; contract hire; or contract purchase being used. These all provide useful tailoring options and we'll be pleased to help you find the right product for you.

We are asset finance experts, so please talk to us about your requirements.