Summary: Asset finance is a specialised form of business lending used to fund the purchase or use of tangible assets, such as machinery, vehicles, or technology, without requiring large capital outlay. It helps businesses manage cash flow effectively and acquire necessary resources quickly, primarily through structures like hire purchase and various leasing agreements.

Summary: Asset finance provides UK businesses with methods to acquire essential physical assets—such as machinery, vehicles, or IT equipment—by spreading the capital cost over time. The main categories are Hire Purchase (which targets eventual ownership) and Leasing (which provides usage rights only). Choosing the right type depends on your need for ownership, tax strategy, and the desired length of the financing term.

Summary: Many assets, both tangible (property, vehicles, machinery) and intangible (invoices, intellectual property), can be financed through loans or specialist finance products. However, when using property or other high-value items as security, failure to meet repayment obligations could result in legal action or the loss of the asset.

Summary: At the end of a Hire Purchase agreement, you typically have three contractual choices: pay a final Option to Purchase Fee to gain legal ownership; return the asset to the finance company, provided all outstanding payments have been met; or, depending on the provider, part-exchange the asset for a new agreement.