Asset Finance

This is the process of obtaining the necessary funds in order to purchase a new asset for your business. These can either be 'hard' assets like cars, vans, plant equipment or machinery, or 'soft' assets such as computer software. There are numerous advantages of using Asset Finance to fund business purchases over other methods:


  • It frees up capital, improving your cash flow
  • You can diversify your business funding base
  • Finance is secured on the asset so no extra collateral is required
  • Unlike a bank overdraft, it's not repayable on demand
  • Interest rates are fixed so you know exactly what you have to pay back

Buying or Leasing?

One important consideration is whether you wish to buy the asset outright or lease it. If you choose to buy then you have the choice of either Hire Purchase or Contract Purchase. Lease finance options include Contract Hire, Finance Leases or Operating Leases. Each option has different tax and balance sheet treatments, so while we are happy to walk you through the finance options available, we recommend seeking advice from your accountant/finance function on which is most suitable for you.


Are you looking for Asset Finance?

Just complete a few simple questions below and we'll be in touch soon to get things moving.

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"I would highly recommend Choice Loans who are experts in their field"

David Cook, Castello Leisure

What is needed to apply

Applying for Asset Finance is very easy. Below are listed the things you need in order to apply.

  • Eligibility Criteria UK registered business with a good credit record. Start-ups will likely need a Personal Guarantee from a home-owning Director.
  • Documents Required Financial accounts, management accounts and sometimes 3 months' bank statements.
  • Additional Comments Finance can be approved in principle within 24-48 hours and paid out within days after that.

FAQ

  • How much is available? 

    Almost any amount is available. From £1,000 up to £1,000,000.

  • Over how long can the finance be arranged?

    Typically over 3 years but in some cases it can go to 5 years.

  • How quickly can it be arranged?

    A decision in principle can be achieved in 24-48 hours with payout 3-5 days after that.

  • What rates are available?

    This will depend on many circumstances such as the business credit score, business trading history, nature of asset and how much you want to borrow.

  • Are the repayments fixed?

    Usually yes, so you know exactly what you need to pay for the term of the contract.

  • Do I have to be a LTD to apply?

    No Asset Finance is available to sole traders and partnerships as well.

  • What kind of assets can be financed?

    The majority of Asset Finance is new equipment, but it is also possible to refinance existing assets as long as they are still working and of merchantable quality.

  • Can I choose my own supplier of the asset or am I tied to one recommended by the finance company?

    There are no restrictions here; you can choose to buy from whomever you like and we will arrange the finance.

  • Can I refinance equipment I already own?

    Yes, subject to the age, condition and value of the equipment.

  • Can I keep the asset on my balance sheet?

    Yes, there are asset finance options available where the asset is kept on your balance sheet while being financed.

  • Can I pay off early?

    Yes, should you wish to do this, a settlement amount can be arranged.

  • Will you need to visit my business before approving the finance?

    Not usually, unless you are borrowing a large amount of money.

  • If I am a start-up, can I still get Asset Finance?

    Yes, but you will need a strong business case behind you and the Directors/owners of the business will need to have good credit records and likely be home owners

Choice Loans Customer Reviews

To learn more or to apply for a Asset Finance please either fill in the call back form at the top of this page or call us on 01494 410 125 and we'll walk you through your options at no cost or obligation.