Asset finance is a loan that is used to obtain equipment.
Whenever organisations invest in tangible assets – anything from office equipment to manufacturing plants, from cars to a fleet of aircraft – they usually need an affordable, secure means of finance.
That’s what the Asset Finance sector is all about. In fact, Asset Finance is the third most common source of finance for businesses, after bank overdrafts and loans, and it is also of growing importance in the public sector.
Asset finance is a flexible alternative to a traditional bank loan, providing significant cash flow and tax benefits for businesses looking to purchase a new piece of equipment, a vehicle or other fixed assets.
Asset finance accounts for the majority of debt-financed business investment.
Around one in three small businesses that have any external borrowing use asset finance. Amongst these, the use of asset finance is particularly high in Wales (54%), the North East (46%) and the North West (42%) with agricultural and manufacturing making the most of leased equipment.
Asset finance is: