How to use asset finance

A way of funding capital expenditure on tangible, moveable assets, using the asset as the primary source of security. Funding terms and products are structured around the working life of the asset being funded.

Allows the borrower to obtain legal ownership of the asset at the end of the agreement, by exercising an option to purchase having complied with the terms of the agreement.

Hire Purchase is a way of spreading the cost of capital investments for your business – with straightforward documentation and regular repayments. You can acquire ownership of the assets at the end of the agreement.

Leasing agreements enable the borrower to spread the cost and VAT of an asset through regular rentals under a finance agreement, easing cash flow.

Throughout the term of the finance agreement, which generally extends beyond the duration of a standard Hire Purchase agreement to align with the asset’s useful life, VAT is applied to each rental rather than being due in full upfront

The borrower enjoys uninterrupted use of the asset throughout the funding period, although legal ownership of the asset cannot actually pass to the borrower.

An asset loan is a funding agreement where the lender may not wish to take title to the assets being funded – but will seek an alternate form of security in support of the lending. This usually occurs where there is no tangible security to be taken from the goods in themselves (for example IT Software) or refinancing assets that have been in situ and used by a company for some time.

• Funding for IT hardware and software
• Support for businesses in monitoring, tracking and maintaining IT assets
• Funding technology for service solutions
• Ability to support Technology-as-a-Service solutions

• Bespoke solutions for large complex asset finance requirements
• Typical funding requirements range from £5m to £50m but can be higher
• Solutions include but are not limited to commercial marine, renewables energy projects long term contracted receivables and revolving tangible asset borrowing based loans.

• Technical understanding of the funding of a wide range of vehicle types