How does asset finance work?

Asset finance allows you to acquire vehicles, equipment, or machinery without paying the full cost upfront. Typically, a deposit payment only is made and the balance repaid through regular instalments over an agreed term. In some cases, a residual amount of the balance can be deferred until the final instalment payment, to reduce the regular instalment amounts. You’ll own the asset after all instalments, along with a small option to purchase once a fee has been paid.

What types of assets can I finance?

Most tangible business assets qualify, such as cars, commercial vehicles, plant and machinery, IT and office equipment, manufacturing equipment, agricultural machinery, and sometimes specialist equipment.

What’s the difference between asset finance and a business loan?

A business loan provides cash for general purposes and is often secured against the business or other forms of collateral. Asset finance is tied to a specific asset, with the asset acting as security. Typically, no additional security is then required.

Is asset finance suitable for smaller businesses?

Yes. It’s widely used by all sizes of businesses because it preserves cash flow, avoids large upfront costs, and doesn’t require extensive security. It allows for a business to acquire an asset now and pay for it over the productive life of that asset.

Asset finance that’s built for business

With our flexible finance solutions, you can unlock the assets your business needs to grow. We’re ready to support your business ambitions with an expert team and a bespoke service.

Becoming a customer

What you can expect

Direct access to finance experts, who deal with every transaction in branch

Tailored financing with flexible payment options and competitive pricing

Seamless transactions with quick turnaround times

Refinance

For assets you’ve purchased in the last six months, our sale and hire purchase back option could help you unlock the capital invested in them.

Hire purchase

Whether you’re investing in new or used vehicles, machinery or specialist equipment or other business assets, we offer flexible and cost-effective funding and at the end of the agreed term, you can choose to own the asset.

How our hire purchase works

Apply and agree your plan - We’ll agree the asset details, your deposit, the term of the agreement, your monthly payments, and the option-to-purchase fee upfront with you.
We purchase and own the asset - We’ll buy the asset and retain ownership for the full term of your hire purchase agreement. You’ll have full use of it throughout.
You use and look after the asset - During the agreement, you’re responsible for: road tax (where applicable); ongoing maintenance and servicing; and fully comprehensive insurance for the full term. You can’t sell or dispose of the asset without our consent, as we retain legal title until the agreement ends.
Make your monthly payments - Your asset may be at risk of repossession if payments aren’t made as agreed. The value of the asset may depreciate over time and at any point it may be worth less than the amount you still owe.
Ownership at the end - Once you’ve made all payments and paid the agreed option-to-purchase fee, ownership of the asset can be transferred to you.

Key benefits

Gives you the flexibility of a cash buyer.
Maximises cashflow benefits for your business.
Enables you to spread the capital cost of the asset over a set period
You can benefit from flexible payment structures, which can be matched to your own cashflow and budget. These include:
- VAT deferment following asset purchase
- Option of fixed or variable interest
- Balloon payments* (certain assets only).

*A balloon payment is the final payment you make on a loan which is higher than your regular, monthly payments. Attaching a balloon payment to your loan reduces the amount of your monthly payments.

FAQs

How does asset finance work?

Asset finance allows you to acquire vehicles, equipment, or machinery without paying the full cost upfront. Typically, a deposit payment only is made and the balance repaid through regular instalments over an agreed term. In some cases, a residual amount of the balance can be deferred until the final instalment payment, to reduce the regular instalment amounts. You’ll own the asset after all instalments, along with a small option to purchase once a fee has been paid.
What types of assets can I finance?

Most tangible business assets qualify, such as cars, commercial vehicles, plant and machinery, IT and office equipment, manufacturing equipment, agricultural machinery, and sometimes specialist equipment.
What’s the difference between asset finance and a business loan?

A business loan provides cash for general purposes and is often secured against the business or other forms of collateral. Asset finance is tied to a specific asset, with the asset acting as security. Typically, no additional security is then required.
Is asset finance suitable for smaller businesses?

Yes. It’s widely used by all sizes of businesses because it preserves cash flow, avoids large upfront costs, and doesn’t require extensive security. It allows for a business to acquire an asset now and pay for it over the productive life of that asset.