Asset Finance enables your business to acquire the necessary machinery, plant, equipment, or vehicles essential for its operations without having to make the full upfront payment for their cost. Additionally, it allows you to unlock the value of existing assets to support working capital and address cash flow requirements.

Leasing Finance

In Asset Finance, your business enters into a lease agreement for a predetermined period and makes regular payments. Essentially, you are effectively renting the asset, as it is not owned by your business.

Hire Purchase (HP) 

This allows your company to purchase an asset over an agreed term with agreed regular payments.

Refinance 

Put simply, your company may possess assets that are either completely unencumbered or partially financed. By utilizing Asset Finance, businesses can secure the necessary funding without having to commit their own capital.

lend up to 70%  

Lenders typically offer loans of up to 70% of the current value of the asset, subtracting any outstanding finance. The ownership of the asset is transferred to you once all agreed payments have been successfully completed.

What sorts of asset finance are there?

There are several main types of asset finance and a few minor variations. Each has its uses, benefits and disadvantages but all broadly follow the principles of asset finance given above. A general overview of what’s available follows; the scheme(s) offered by your finance provider may not necessarily match all the features shown below, so it’s important to check exactly the terms you are being offered.

Hire Purchase (or lease purchase)

This model closely resembles hire purchase for individuals. In this case, the hire purchase provider maintains ownership of the asset to be leased throughout the duration of the agreement and leases it to the business, which makes predetermined regular fixed payments.

Finance Lease (or capital lease)

Unlike certain other forms of asset finance, in this case, the business is solely renting the assets without the option to purchase them outright. Regular payments are made according to an agreed schedule, typically continuing until the finance provider has recovered the asset’s purchase value. In certain situations, the finance company may permit the business to receive a percentage of the sale value when the item is eventually sold.

Equipment Leasing

This resembles finance leasing, where the provider purchases the necessary equipment and subsequently rents it out to the business for a predetermined fixed fee over an agreed duration. At the end of this period, the business has the option to either extend the lease, upgrade the item, purchase it at a predetermined price, or simply return it to the provider.

Operating Leasing

This type of financing, known as equipment leasing, is similar in nature. It is commonly utilized for specialized equipment or machinery that the business may not need for the entire useful life of the asset or has no intention of purchasing permanently. Essentially, it involves renting an item for a short or medium term, with rental costs determined by the length of time the asset is required. This form of financing is often more cost-effective than equipment leasing, as the business only pays for the calculated value of the item over the agreed limited lease duration.

Asset Refinancing

Asset refinancing can be categorized into two primary forms: the first involves utilizing a company’s assets, whether tangible or intangible, as collateral for a loan. The second, known as asset-based lending, entails a business selling an asset to an asset finance provider for an agreed lump sum. Subsequently, the business leases back the sold asset from the finance provider, thereby repaying the received lump sum. Asset refinancing differentiates itself from a standard secured loan in that a business can use physical assets, even if they only possess partial ownership, as collateral. However, the collateral value is limited to the equity the business holds in that specific asset.

Contract Hire

Also known as vehicle asset finance, this type of financing offers the advantage of alleviating a business from the time and budget-intensive responsibilities associated with conventional vehicle ownership. The provider takes on the tasks of sourcing and purchasing a new vehicle, as well as covering all maintenance and servicing expenses. Additionally, at the end of the lease period, the provider assumes the responsibility of disposing of the vehicle.

Importance of Asset Finance for businesses

Asset Finance is an important tool for businesses as it allows them to acquire the assets they need to grow and operate efficiently without compromising their cash flow. By spreading the cost of the assets over time, businesses can free up their capital for other investments or operational expenses.

AspenFinance understands the importance of Asset Finance for businesses, which is why we offer a range of Asset Finance services and solutions to help businesses acquire the assets they need. Our team of experts can work with businesses to tailor a financing solution that suits their unique needs, whether it’s through leasing, hire purchase, or other financing options.

With AspenFinance, businesses can benefit from flexible repayment terms and competitive interest rates, as well as access to a range of financing options. Our Asset Finance services are designed to help businesses grow and achieve their goals by providing them with the funding they need to invest in their operations.

Overall, Asset Finance is an important tool for businesses looking to acquire assets without compromising their cash flow. AspenFinance’s Asset Finance services can help businesses access the funding they need to grow and succeed, with tailored financing solutions and expert support every step of the way.

Why Aspen is the Best Option For Asset Finance in UK

Aspen Finance is a leading provider of Asset Finance services in the UK, offering a range of financial solutions to help businesses acquire the assets they need to grow and succeed. Here are some reasons why Aspen Finance is the best option for businesses looking for Asset Finance services in the UK.

Firstly, Aspen Finance has extensive experience in providing Asset Finance solutions to businesses across various sectors. With a team of experienced professionals, Aspen Finance understands the unique needs of businesses and tailors its solutions to meet their specific requirements. This ensures that businesses get the right Asset Finance solutions that work for them.

Secondly, Aspen Finance offers a wide range of Asset Finance products, from hire purchase and finance leasing to refinancing and sale and leaseback. This means that businesses can choose the most suitable financing option for their specific asset acquisition needs. Aspen Finance also provides flexible payment terms and competitive interest rates, making its services accessible to a wide range of businesses.

Finally, Aspen Finance offers excellent customer service, ensuring that businesses receive prompt and efficient assistance throughout the financing process. Aspen Finance’s team of experts provides guidance and support to businesses from the initial consultation through to the final stages of the financing process, ensuring that businesses can focus on what they do best – developing their business.

In conclusion, Aspen Finance is one of the best option for businesses looking for Asset Finance services in the UK. With its extensive experience, wide range of financing options, competitive rates, and excellent customer service, Aspen Finance offers businesses a comprehensive solution to their asset acquisition needs. Contact Aspen Finance today to learn more about how it can help your business grow and succeed.