Grow your business
with Asset Finance

What is asset finance?

Asset finance is a straightforward way for UK businesses to purchase new equipment, vehicles or machinery without making a large upfront payment. Instead of using your cash reserves, you spread the cost through manageable monthly payments, using the asset itself as collateral.

This type of business financing helps you gain access to the tools you need immediately, start generating revenue straight away and preserve your working capital to use for the rest of your business needs.

For many small businesses, asset finance offers a flexible alternative to traditional bank loans, overdraft facilities or lines of credit, especially where protecting day to day cashflow is essential.

How asset finance works

When your business needs new equipment but you don’t want to pay for it outright, asset finance allows you to acquire it now and repay the cost over a set loan term.

Here’s how it works:

1. 1. Choose the asset you want: Vehicle, plant, machinery, IT software, equipment… almost anything essential to your operations!
2. 2. PMD compares finance options: As an independent broker, we compare interest rates, repayment terms, origination fees and structures across a large lender panel to secure you the most competitive deal.
3. 3. Your facility is approved: Standard underwriting checks apply, such as reviewing credit history, business credit, affordability and the asset’s value.
4. 4. Funds are released: The lender pays the supplier directly, and the asset becomes available to your business!
5. 5. You repay in installments: Fixed or variable interest rates, flexible repayment terms and monthly payment plans help you manage cashflow comfortably.

At the end of the agreement, depending on the facility chosen, you may return, upgrade or take full ownership of the asset.

What assets can be financed?

PMD can arrange finance for almost any asset. You name it, it’s likely we can secure funding for it! Typically, assets we see funded the most are:

• Commercial vehicles, vans, HGVs and fleets
• Plant and construction machinery
• Manufacturing and engineering equipment
• IT, software, servers and telecoms
• Office furniture, racking and storage systems
• Gym, fitness and beauty equipment
• Specialist equipment across most UK sectors

We can also structure facilities with nil deposits, VAT deferral and extended terms, making asset acquisition more accessible for many small business owners.

Types of asset finance facilities

Different types of businesses need different structures. PMD can arrange:

Hire Purchase (HP)

A hire purchase agreement is a popular option for businesses that want to own the asset at the end of the term.

• The lender buys the asset on your behalf
• You make fixed monthly installments over an agreed period
• You take ownership once the final payment is made
• Interest is usually fixed, making budgeting easier
• Useful for assets you’ll keep long-term

This structure is similar to a term loan, but the asset itself serves as collateral, reducing the need for extra security.

Finance Lease

A finance lease, also known as an equipment lease, is designed for businesses who are wanting full use and flexibility.

• You control the asset for most of its useful life
• You cover maintenance and upkeep
• Helps spread costs evenly and avoid large upfront payments
• Flexible end of term options (return, extend or sell)
• Great for equipment that regularly needs updating

Advantages of asset finance

Asset finance offers a number of benefits compared to other financing options:

• Spread cost through predictable monthly installments
• No additional security required; the asset acts as collateral
• Preserve cashflow for payroll, stock or day to day needs
• Can be cheaper than unsecured short=term loans or credit cards
• Access better equipment sooner
• Can help improve working capital and cash management
• May avoid the need for large down-payments or using personal credit
• Potential tax incentives such as capital allowances

Asset finance can also complement existing business lines of credit, overdrafts or other lending facilities to spread risk across multiple funding lines.

Is asset finance right for your business?

Asset finance is the right option for businesses that are growing and need modern equipment, prefer to avoid large lump sum purchases and want to maintain a healthy cashflow. It’s also an excellent option for business owners who are planning on investing in multiple assets and want to avoid being overexposed to any one lender.

For small business owners, asset finance offers a clear blend of affordability, flexibility and stability without relying on costly or high interest borrowing, or those who need business funding when traditional bank-loan options aren’t suitable.

How to apply for asset finance

PMD Business Finance works with over 150 lenders, including traditional institutions, alternative funders and specialist providers.

To get started, simply:

1. 1. Tell us what asset you want to finance
2. 2. Share basic business information
3. 3. We’ll compare the best market options
4. 4. You choose the structure that fits your business

If you’d like a bespoke quote or want to discuss your plans, you can call us on 0161 633 2548, email info@pmdbusinessfinance.co.uk or fill in out contact form and we’ll be in touch at a time that suits you.