By Paul Morgan, MD Able Commercial Finance
If there’s one conversation I’ve had a hundred times with business owners over the years, it’s the one where they tell me they’d love to invest in new equipment, or update their kit, or finally get the vehicle fleet they need, but they simply can’t justify the cost upfront. In every case, what they really mean, is they can’t afford to use up valuable working capital just to buy something outright, even if it’s going to help them grow. Which is why I end up talking about asset finance.
I’m not saying it’s the perfect solution for every single business in every single scenario, but in my experience, it’s one of the most underused and undervalued tools available to growing companies. It allows businesses to get hold of the equipment, vehicles or technology they need, when they need it, without draining their reserves or knocking the cash flow sideways. And because it’s secured against the asset itself, it usually doesn’t interfere with existing overdraft facilities or other lines of credit.
I’ve worked with clients in all sorts of sectors – manufacturing, construction, recruitment, professional services – and what’s striking is how often businesses feel stuck between needing to move forward and being unable to do so because of a short-term financial blocker. It might be that they’ve won a new contract but need to invest in machinery to deliver it, or they’ve reached a point where operating with older, slower or less efficient kit is actually costing them money in the long run. But without a way to spread that cost sensibly, the investment just gets pushed further down the list. That’s where asset finance comes in.
It’s a practical, straightforward way of spreading the cost of an essential business purchase over time, usually in regular, predictable monthly payments. And because you’re using the equipment while you’re paying for it, you’re starting to get a return on that investment from the day it arrives. In many cases, the repayments can be aligned with the lifecycle of the asset itself, meaning you’re not stuck paying for something years after it’s been retired – and when it’s time to upgrade, you can simply structure a new facility to keep things moving.
It’s also incredibly flexible. Unlike a traditional bank loan, which can often come with a rigid structure and a one-size-fits-all approach, asset finance can be shaped around the business, not the other way round. That might mean tailoring repayments to match seasonal cash flow patterns, or finding a funder who’s comfortable with a more bespoke or niche asset that wouldn’t typically be covered by high street lenders. And because the appetite for supporting SMEs in this space has grown so much in recent years, there are now a lot more lenders willing to fund everything from yellow plant and beauty equipment to IT systems and security infrastructure.
There are even some generous tax benefits worth mentioning. If you’re purchasing new commercial equipment, you may be able to take advantage of the full expensing scheme, which allows you to claim 100 percent capital allowances against your taxable profits in the year you make the investment. Even if you’re buying second-hand, you can often still claim through the Annual Investment Allowance. It’s definitely worth having a conversation with your accountant about this, because for a lot of businesses, it can significantly improve the financial picture.
We typically talk clients through the two most common forms of asset finance – hire purchase and finance lease – and while they’re similar in many respects, there are a few key differences. With hire purchase, you’ll usually pay all the VAT upfront, followed by fixed monthly payments, and once those are complete, you take full ownership of the asset. With a finance lease, the asset remains in the funder’s name, but you have full use of it for an agreed term, often with the option to extend or upgrade at the end. Both options allow for flexibility, and we help clients understand which is best suited to their goals.
And I should say this – asset finance isn’t just for the big-ticket items. Yes, we fund expensive machinery and vehicle fleets, but we can also help clients finance things like commercial kitchens, salon fitouts, office refurbishments, even software and IT infrastructure. If it’s a core part of how you do business, and it will help you operate more efficiently, win more work or meet demand, chances are it can be financed.
For me, the most satisfying part of this work is helping businesses move forward. I’ve seen clients go from struggling to keep up with demand to thriving with the right tools in place, and all because they found a way to invest without putting everything else at risk. It’s not about borrowing for the sake of it, it’s about making smart decisions that create long-term value.
What makes Able different is that we’re genuinely independent. We’re not tied to one lender, and we’re not just interested in ticking boxes or pushing a product. We take the time to understand the business, what it’s trying to achieve, what the pressures are, and then we go out and find the right facility to support that. Sometimes it’s asset finance, sometimes it’s something else entirely, and sometimes – quite honestly – it’s about saying now’s not the right time and helping the client plan for the future.
So if you’re looking to grow, or even just operate more efficiently, but the numbers aren’t stacking up because of the upfront costs, it might be worth a conversation. Because the right funding doesn’t just fill a gap, it opens a door.
