Asset Finance UK
Asset finance lets you acquire equipment, machinery, and vehicles without a large upfront payment. Instead of buying outright, you spread the cost over 1-7 years with fixed monthly payments. The asset itself acts as security, so no additional collateral is needed.
The three main structures are hire purchase (you own the asset at the end), finance lease (the lender owns the asset, you have use of it), and operating lease (the asset is returned at the end, useful for technology that becomes obsolete). Each has different tax treatment, so the right choice depends on your business circumstances.
Key Benefits
- Preserve cash — spread costs over the asset's useful life
- The asset itself is the security (no property charges)
- Fixed monthly payments for easy budgeting
- Tax-efficient — capital allowances or lease payments offset profits
Frequently Asked Questions
What is the difference between hire purchase and leasing?
With hire purchase, you own the asset once all payments are made (plus a small option-to-purchase fee). With a finance lease, the lender retains ownership but you have full use. With an operating lease, the asset is returned at the end of the term.
Can I claim capital allowances?
With hire purchase, you can claim Annual Investment Allowance (AIA) on the full cost in year one (up to £1M). With leasing, you deduct lease payments as a business expense instead. Your accountant can advise on the best structure.
Is a deposit required?
Typically 10-20% deposit, though some lenders offer 0% deposit options for strong applications. A larger deposit reduces monthly payments and may improve the interest rate offered.
Can I finance used equipment?
Yes. Both new and used assets can be financed. For used equipment, lenders will assess the remaining useful life and may require an independent valuation for higher-value items.
Related Funding Options
Asset Finance for Manufacturers
Finance CNC machines, production lines, and industrial equipment. Asset finance designed for UK manufacturing businesses.
Asset Finance for Construction
Finance plant, machinery, and construction equipment. Excavators, cranes, and specialist plant for UK construction companies.
Asset Finance for Transport & Logistics
Finance trucks, trailers, and fleet vehicles. Specialist asset finance for UK haulage and transport businesses.
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Learn About Our Broker NetworkCoreFi is a trading name of JG Core Ltd (Company #16218779, England & Wales). CoreFi acts as a commercial finance broker and does not provide regulated financial advice. All products described are unregulated business-to-business finance. Information on this page is for general guidance only and does not constitute a formal offer of finance. Terms, rates, and availability are subject to lender criteria and may change without notice.