Growth can come down to one purchase – it might be a new machine that increases production capacity, or a vehicle that allows you to take on more work. New equipment that improves efficiency or helps you win larger contracts.
The challenge is that buying assets outright can place significant pressure on cash flow at exactly the point when a business needs working capital most. Asset finance allows you to spread the cost of equipment, vehicles and machinery over time, preserving cash while still giving your business access to the assets it needs to grow.
Asset finance is one of the most flexible forms of commercial funding available, but not every lender supports every asset type.
When you work with Able Commercial Finance, you benefit from:
Our role is to find the right funding solution for the asset you need and the way your business operates.
Asset finance is an umbrella term covering several different funding options. The right structure depends on the type of asset, how long you intend to keep it and what you want to happen at the end of the agreement.
Hire purchase is the most common form of asset finance for vehicles, plant and machinery.
You pay for the asset in monthly instalments over an agreed period, and once the final payment has been made, ownership transfers to your business.
Many businesses prefer hire purchase because they know they will eventually own the asset outright while spreading the cost over several years.
With a finance lease, the leasing company purchases the asset and retains ownership throughout the agreement.
Your business pays for the use of the asset over the lease term rather than purchasing it directly. At the end of the agreement there are various options available depending on the asset and the structure of the lease.
Finance leases are often used where residual value is an important factor or where flexibility is required.
An operating lease is typically a shorter-term arrangement where the asset is returned to the leasing company at the end of the agreement.
This can work particularly well for vehicles, technology and equipment that may become outdated or lose value quickly.
Rather than worrying about disposal or resale value, the business simply uses the asset during its most productive years and returns it when the agreement ends.
Asset finance isn’t only for new purchases – if your business already owns valuable assets outright, it may be possible to release capital from those assets through asset refinance.
This allows you to unlock cash tied up in vehicles, machinery or equipment and use it to support working capital, growth plans or other investment opportunities.
The structure of an asset finance agreement can have tax implications. For example, hire purchase and finance lease agreements may be treated differently for capital allowance purposes. The most suitable option will depend on the circumstances of your business, the type of asset being funded and your wider tax position.
Able Commercial Finance can explain how different structures work, but we do not provide tax advice. Before proceeding, you should always discuss the tax implications with your accountant or tax adviser.
Asset finance is suitable for almost any business that relies on physical assets to generate revenue.
Common examples include:
Many of the businesses we support through our manufacturing and sector-specific finance services use asset finance as part of a wider growth strategy.
If the asset helps generate revenue, there is a good chance it can be financed.
If you are looking to invest in new assets or release capital from existing assets we can support you in accessing a variety of different asset finance solutions. Why tie valuable cash up in assets that could be used to support the working capital of your business. With asset finance you are able to spread the cost of purchase over the course of the economic life of the asset. Typically, you are able to obtain funding from 12 months to 84 and can obtain finance from £5,000 to multi million transactions. Asset Finance can be tax efficient, flexible and can preserve your cash flow.
It is designed for any type of business, including SMEs, who wish to access an asset that has high value to support their business’ growth. Asset finance is suitable for eligible businesses including limited companies and partnerships, sole traders and public limited companies.
It can be used to refinance an existing asset (including any outstanding finance if necessary and viable), to release cash, to purchase new equipment or machinery new or as a mixture of the two. At Able Commercial Finance, we can help you to understand which option is best suited for your business needs. Any asset-based finance package can be put together to take into consideration the existing and varied assets of a company, whilst at the same time building an individual solution. This solution can be tailored to the precise requirements that the company might have, both in the immediate and the long term.
We discuss the asset you need, how it will be used and what your business is trying to achieve.
We review the asset type, business profile and preferred funding structure.
Not all asset finance lenders support all asset types. We identify the lenders most likely to provide the right solution at the right terms.
We manage the process through to completion and remain available for future funding requirements.
To find out more fill in an enquiry form or call us on 01625 403121
Yes. Many lenders will finance used equipment and vehicles, although eligibility depends on factors such as age, condition and resale value.
Often it is - because the funding is secured against the asset itself, asset finance can be more flexible and may preserve other borrowing facilities for different business needs.
It varies by lender and asset type - some agreements require a deposit, while others can fund a high percentage of the purchase price.
Yes. Asset refinance can release capital from machinery, vehicles and equipment that your business already owns outright, providing additional working capital without selling the asset.
Whether you're investing in a single vehicle or a major capital purchase, Able Commercial Finance can help you find the most appropriate funding solution.
