Asset Finance: Funding Your Business Equipment
From vehicles to machinery, asset finance helps you spread the cost of essential business equipment. Learn about your options.
Asset finance allows you to acquire business equipment — vehicles, machinery, technology — without paying the full cost upfront. Instead, you spread the cost over the useful life of the asset.
Types of Asset Finance
Hire Purchase
You pay instalments over an agreed term and own the asset at the end. You can claim capital allowances and the interest is often tax-deductible.
Finance Lease
You rent the asset for an agreed period. At the end, you can extend, return, or sell the asset (with a rebate of the sale proceeds). The lender remains the legal owner throughout.
Operating Lease
A shorter-term rental where you simply return the asset at the end. Common for vehicles and IT equipment that depreciate quickly.
Asset Refinance
If you already own equipment outright, you can use it as security to raise cash. The lender effectively buys the asset from you and leases it back.
Benefits
- Preserve working capital
- Spread cost over asset life
- Tax-efficient structures
- Fixed monthly payments
- Potential to upgrade at end of term
- Faster than traditional loans
Could this apply to your business?
Speak to a specialist about your own circumstances — free, no obligation.
Related resources
This article is published for general information only and does not constitute financial, tax, accounting or legal advice, or a recommendation to apply for any product. Any rates, LTV ranges, fees, timelines, tax rules or government schemes mentioned are indicative and reflect general market norms at the time of writing; they may change and should be confirmed with a specialist before acting. Read our editorial policy to see how we produce and review our content.
