Asset finance is a way to fund the purchase or lease of business-critical equipment. It allows you to spread the cost over time, helping you preserve cashflow while still accessing the tools your business needs to grow.

A wide range of assets can be financed, including vehicles, machinery, IT equipment and more. If it’s essential to your business, there’s a good chance we can help you fund it.

Yes, used assets can be financed. Many funders on our panel are happy to support the purchase of second-hand equipment, depending on the asset’s age and condition.

Yes, the asset you’re financing will need to be insured for the duration of the agreement. This protects both your business and the funder’s interest in the asset.

Absolutely. You’re free to choose the supplier that best suits your needs when using asset finance. If you need help sourcing a supplier, we can assist with that too.

Yes, we can help you find a trusted supplier for the asset you’re wanting to finance. Over the years, we’ve built strong relationships with reputable vendors across a wide range of industries.

With a hire purchase agreement, you agree to hire equipment from a lender and make monthly payments to them. You will usually take ownership of the asset after all payments have been made (the final instalment will typically include an option to purchase fee). A lease, on the other hand, is an agreement where you are granted use of equipment in return for making monthly rental payments. You will not automatically take ownership of the equipment at the end of the agreement.

Usually, with a hire purchase agreement the equipment will qualify for capital allowances, meaning that tax relief on the cost of the equipment is obtained in the year acquired and interest and finance charges included in the monthly hire purchase payments can be deducted from taxable profits. With lease agreements the equipment won’t typically qualify for capital allowances, although tax relief if obtained by offsetting monthly rentals against taxable profits as they arise.

Both options offer flexibility, and the right choice depends on the nature of your business and your objectives.

A hire purchase agreement allows you to spread the cost of an asset over time, with fixed monthly payments. Once all payments are made, ownership of the asset transfers to your business. It’s a great option if you’re looking to eventually own the asset outright.

A finance lease enables you to use the asset without the upfront cost of purchasing it. Instead, you’ll make regular payments over an agreed term. VAT is also spread across each payment at no interest cost, meaning the upfront deposit is often much lower than a hire purchase agreement.

Yes, short term lease and rental agreements are available. These are ideal if you need an asset for a limited time or want to keep your options open. Get in touch to discuss what’s available.

At the end of a lease term, you’ll typically have the option to end the agreement and return the equipment or extend the lease. You may be provided with an option to purchase the equipment or upgrade to newer equipment – the exact options will depend on the equipment and the type of lease that you’ve taken out.

In most cases, lease agreements don’t automatically transfer ownership to you at the end of the agreement, although some leases may offer the option to purchase the asset at the end of the term. Speak to us to explore your options.

Some finance agreements may require a deposit, while others may not. This will depend on the funder, the asset, and your business profile.

In most cases, yes. Usually, under a hire purchase agreement VAT will be payable as a deposit and may be claimed in your next VAT return. Under a lease agreement VAT is added to each monthly rental invoice and spread over the term of the lease, which can be claimed in each quarterly VAT return. The exact VAT treatment will depend on several factors including your VAT registration status and the nature and use of the asset. We recommend speaking to your accountant for tailored tax advice.

Yes, we can arrange finance for equipment sourced from multiple suppliers. This is particularly useful if you’re undertaking a larger project with various components.

Absolutely. We can structure a finance package that covers multiple assets, even if they’re from different suppliers or of different types.

Typically, maintenance and service fees are not funded within the agreement, however some funders may accommodate an element of inclusion. For more details, let us know what your requirements are.

Yes, a balloon payment on an asset finance agreement can be arranged. This allows you to reduce your monthly payments by deferring a larger payment to the end of the term.

A balloon payment is a larger final payment made at the end of a finance agreement. It helps reduce monthly payments and can be useful for managing cashflow.

Residual value is the estimated value of an asset at the end of a lease or finance term.

Yes, financing an asset from a private seller is possible, though it may require additional checks. Speak to us and we’ll guide you through the process.

Yes, we can help you secure finance for assets purchased at auction. It may be beneficial to get pre-approval in place, so get in touch before you bid.

Usually, you will be able to claim capital allowances for assets financed with hire purchase agreements in the year of acquisition, but not for assets acquired via a lease (instead, tax relief is obtained over the term of the lease). We recommend speaking to your accountant for tailored tax advice.