What is it?

Many businesses are now turning to asset finance in order to expand and grow revenue. This type of finance mainly involves the use of leasing and hire purchase agreements (other types include refinancing and operating lease) whereby a regular charge is paid for use of an asset over an agreed period of time meaning companies can avoid paying out a lump sum to buy something outright, thus giving them greater choice and freedom.

Why choose it?

• Available to sole traders, partnerships, limited liability partnerships and limited companies and ideal for SMEs (small and medium sized enterprises employing less than 250 staff) looking to invest in business growth
• Flexible – There are a range of different payment options available such as low start and seasonal which can help to manage cash flow. It also allows more freedom and flexibility around the types of products (assets) that businesses can acquire
• Options – It can be used for capital expenditure as an alternative to a loan or overdraft
• Safe – Charges and repayments are agreed upfront meaning facilities are much less likely to be reduced or withdrawn if the business falls on hard times. As the loan is secured, it is not repayable on demand
• Release Capital – Potential to refinance existing borrowing using funds raised from unencumbered company assets to raise capital with loans from £5,000-£1million