What Is Asset Finance?
Asset finance covers a range of financial products that allow businesses to acquire physical assets - machinery, vehicles, technology, manufacturing equipment - without paying the full purchase price upfront. The cost is spread over time, with the asset itself typically serving as security for the lender.
The Main Types of Asset Finance
Hire Purchase (HP)
The lender buys the asset and hires it to the business for an agreed period. The business makes regular monthly payments and takes ownership at the end of the term. HP is popular when the business wants to own the asset long-term.
Finance Lease
The lender purchases the asset and leases it to the business for an agreed term. The business does not own the asset at the end. Often preferred when the business wants to keep the asset off its balance sheet, or when the asset may be superseded by newer technology.
Operating Lease
A shorter-term arrangement allowing the business to use an asset for part of its useful life and return it at the end. Common for vehicles and technology where regular upgrades are important.
Refinance and Sale and Leaseback
Businesses that already own assets can raise cash against them. The lender values the asset and advances a proportion of that value, with repayments made over an agreed term.
What Can Be Financed?
Almost any physical business asset: commercial vehicles and HGVs, manufacturing machinery, agricultural equipment, printing and packaging equipment, IT and technology, medical and dental equipment, fit-out costs, and renewable energy installations.
How ABL Can Help
ABL works with over 40 specialist asset finance lenders. Our team will assess your requirements, identify the most appropriate structure, and secure the most competitive terms available. Contact us to discuss your requirements.