Can suit identifiable assets such as vans, machines, tools, production kit, technology or specialist equipment.
Asset Finance
Asset finance for vehicles, equipment and machinery
Asset finance can help a business fund equipment, vehicles, machinery or technology without paying the full cost upfront.
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Asset description, supplier details, price, deposit, VAT position and expected use are usually useful early details.
The lender will usually care about asset type, age, value, resale market, affordability and the finance term.
When asset finance may fit
Asset finance may fit where the funding need is tied to a specific business asset. That could mean buying vehicles, upgrading machinery, replacing equipment, adding production capacity or funding technology that helps the business trade.
It can be useful when the business wants to preserve cash, match repayments to the use of the asset or avoid delaying an important purchase while waiting for cash reserves to build.
What lenders usually look at
Lenders may consider the asset, supplier, business trading history, deposit, affordability, credit profile and whether the proposed term makes sense for the useful life of the asset.
New assets, used assets, specialist machinery and vehicles can all be assessed differently. The clearer the quote and the business purpose, the easier it is to review lender appetite.
What helps the enquiry
Helpful details include the asset type, make or model, supplier, price, VAT treatment, deposit available, whether the asset is new or used, expected use and whether there is existing asset finance.
Recent bank statements, accounts and management figures may also be requested if a lender route looks suitable.
Benefits and considerations
Asset finance can preserve working capital and make a purchase easier to plan. It may also allow a business to replace older equipment sooner, take on new contracts or improve efficiency.
The business should consider total cost, deposit requirements, ownership position, maintenance, early settlement terms and what happens if payments are missed. Funding is subject to lender criteria.
Asset finance guides by asset type
Specific guides for vehicles, machinery, plant, technology and sector equipment.
Asset finance FAQs
Can used equipment be financed?
Used equipment can sometimes be financed, but lender appetite depends on the asset type, age, condition, supplier, valuation and resale market. A clear supplier quote and asset details help lenders decide whether the asset is suitable security for the facility.
Is a deposit always needed for asset finance?
A deposit is not always required, but it is common for some assets and applications. The deposit position can depend on the lender, asset type, business trading history, credit profile and whether the asset is new, used or specialist.
Can asset finance cover vehicles, machinery and technology?
Yes, asset finance can be reviewed for many business assets including vans, trucks, plant, machinery, production equipment, IT, software-linked hardware and specialist equipment. Suitability depends on the asset, supplier and business affordability.
Can existing assets release funds?
Asset refinance may be possible where the business owns suitable assets or has enough equity in existing financed assets. Lenders may review asset value, condition, ownership, settlement figures and whether the released funds are affordable for the business.