Commercial Asset Finance

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Spread the cost of new business equipment over affordable monthly payments

  • Annual flat rates from 6.59%
  • £10,000 – £2,000,000
  • Terms between 2 and 6 years
  • Refinance, hire purchase & lease
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427 reviews on 4.8 stars
 
  • Both a lender and broker

  • Over £1bn financed since 2007

  • Expert personal service

A cheaper way to fund your growth?

Business Asset Finance, Spread the Cost of New Equipment

Smart business owners opt for asset finance when buying equipment, as its typically much cheaper than a loan. Buying business assets offers reduced risk to lenders meaning rates are generally lower when compared to a straightforward cash injection. Asset finance allows a business to avoid the upfront cost of large purchases such as equipment, machinery, vehicles or refurbishment projects and usually takes one of three forms, lease finance, hire purchase, or equipment refinance.

A recent study by the Institute of Directors found that 1/3 of small businesses are planning to boost their investment in plant, machinery and equipment. Many SMEs found 2023 to be a challenging year, with thousands of our customers affected by supply chain delays, rising energy costs and staff shortages. In preparation for growth through Q4 and into next year, smart business owners are now looking at ways to boost revenue, expand, diversify, or win new contracts. Asset finance is a cost-effective way to acquire the new equipment your business needs to grow.

Did You Know?

Asset Finance May Allow You To Pay Less Tax

Hire purchase results in guaranteed ownership of the asset, which means it often qualifies for the government’s ‘full capital expensing’ tax allowance. This allows you to deduct the asset’s value from your company profits and therefore pay less corporation tax. With lease finance , often the whole or part of your monthly payment can be deducted from your balance sheet, as the lease may be treated as an operating cost. This again results in you paying less corporation tax. We always advise checking your own tax liabilities with your accountant.

Our Simple Process

How does Asset Finance Work?

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1. Enquire online in 1 minute. No effect on your credit score.

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2. A chat to discuss your goals and collect documentation.

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3. We complete applications, find the right deals and get your no obligation quotes.

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4. If accepted, your assets are funded and delivered.

Enquire today

Asset finance calculator – estimate your repayments

Having arranged over £1 Billion in funding for well over 15,000 UK businesses, our experts will take the time to understand your goals, and if there’s finance available from our panel, we will help you get it. Use our finance calculator to estimate monthly repayments based on the borrowing amount, term and your approximate credit rating.

Asset finance for new equipment

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What is an asset?

A business asset is anything that has economic value. Assets include everything owned by the company which have a current value or will provide monetary benefit in the future. They are key aspects of a company’s balance sheet.

Typically these are things that the company could sell and are broadly divided into Hard and Soft Assets. Hard assets tend to retain a significant amount of their value over time, such as a lorry or a machine, whereas soft assets tend to depreciate rapidly or lose value once installed, such as technology, furniture or sports equipment.

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What is asset finance?

Commercial asset finance is a type of secured business loan that allows a business to buy assets without the upfront costs of large purchases. 

Owners often want to grow their businesses, take advantage of immediate opportunities or buy equipment without delay. Asset finance allows you to buy what you need and spread the cost over several years with affordable monthly repayments. This has the added benefit of not tying up other lines of credit or using all the business’ spare cash. 

With commercial asset finance, a company can add or replace equipment, buy vehicles or refit their premises, enabling them to expand or keep up with the market. A lender purchases the assets a business needs and then leases them back through fixed monthly payments over an agreed period.

What can I use Commercial Asset Finance for?

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How Does Asset Finance Work?

Commercial asset finance can be broken down into three distinctive parts; pre-agreement, during the course of the plan, and finally the agreement’s end.

Before the finance agreement

When businesses need new equipment, they identify what is required and who to buy it from. They then contact Portman to discuss their finance options. Depending on the goals of the business and the trading situation, customers decide whether lease finance or hire purchase is right for them.

During the asset finance plan

Based on the chosen option, a finance proposal is put together on behalf of the customer. The preferred lenders, including, potentially, ourselves at Portman, will review the application and decide whether to make an offer. The most favourable terms available to a business are; secured deposits, monthly repayments and security. Once these are agreed upon, a financial agreement is put in place.

During the repayment schedule, any asset remains the property of the lender.

After the asset finance plan

At the end of the term, options vary depending on the finance agreement. Hire customers can buy the asset outright for a nominal fee or balloon payment. Lease finance customers can continue renting, hand the assets back, or usually arrange to purchase the items for an agreed fee.

Portman is both a lender and a broker and has supported UK SMEs with asset finance for over 15 years. We are well-placed to find the right deals to help your business grow.

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What are the Types of Asset Finance?

It can be difficult to determine which finance option is best for you. To understand how commercial asset finance works, you must also understand the difference between hire purchase (HP) and lease finance.

With HP and equipment lease finance, an agreed amount is paid to a lender each month over a defined term in return for using an asset. With lease finance, deposits are not usually necessary. The interest and VAT amounts are included in the monthly fee. At the end of the term, the customer can keep renting, return the item to the lender, or often arrange to purchase the item for an additional fee.

Please seek professional tax advice before deciding which is best for you.

Hire Purchases

Hire purchases usually require the VAT to be paid upfront and an initial deposit. At the end of the term, the customer will buy the asset through a nominal fee or balloon payment, depending on the chosen option.

Lease Finance

Lease finance is a rental agreement, so the payments can normally be deducted from company profits before calculating tax. In comparison, a hire purchase is, as the name suggests, a purchase. This means only interest payments can be deducted from company profits, but capital depreciation can be applied.

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How much does asset finance cost?

It is important to note that commercial asset finance is not a one size fits all cost, and the price you pay depends on several factors.

The interest rates available to each business can be very different. Individual circumstances, credit history, business performance, and the type of asset purchased all affect the rate. Being both a lender and a broker, Portman can explore the market on your behalf and choose from multiple providers. We then find a single deal or combination that most closely matches your business requirements.

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Asset Finance Calculator

When you work with our team at Portman, we take away the stress and uncertainty, so you can rely on us to secure the best business asset finance deal for your needs. In fact, we’ve made finding out how much you could potentially borrow and the monthly repayments even easier with our asset finance calculator.

Simply tell us how much you’d like to borrow, over how many months and for what type of finance, and we’ll give you estimated monthly repayments.  

 If you need more information, why not speak to a human and get a no-obligation quote from our team?

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Benefits of Asset Finance

  • Buy what you need now
  • Invest in new machinery, equipment and vehicles
  • Preserve existing credit lines
  • Spread your costs with fixed monthly payments
  • Potential tax advantages
  • Avoid price inflation
  • Boost cash flow for operational cost and contingency
  • Enable business growth
  • Secure fixed competitive rates
  • Protect your personal wealth
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Why Choose Portman Finance Group?

By now, you should have all the information on commercial asset finance, but why choose these financing options from Portman? 

The answer is simple. At Portman, we are proud to offer a personal and professional service. Plus, since 2007, we have raised over £1 billion in funding. So, even if commercial asset finance is not the right option for you, we may be able to help you with a different service. 

Our clients love working with us because;

  • We can assist you with financing for most types of assets and purposes
  • We take time to understand your business and secure you the right loan
  • We can offer finance even when others cannot 
  • We will do our best to help even if you don’t have a strong credit history
  • We promise you will have one point of contact from start to end
  • We provide solutions quickly, sometimes within hours

Want to know more? Don’t hesitate to learn more about us at Portman and our team today.

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Asset Finance FAQs

What is asset finance?

Asset finance is a flexible way for business owners to fund their companies, offering a quick and convenient alternative to more traditional lending methods such as bank loans. It involves making regular payments for the use of an asset, such as a key piece of equipment, over an agreed period of time, saving you from the cost of buying it outright. This preserves your cashflow and frees you up to invest in other areas of the business. At the same time, you are generating income from your new asset while paying for it. For small-to-medium-sized businesses and start-ups especially, asset finance is one of the most accessible and flexible forms of finance, as well as an effective strategy to generate growth.

What is the difference between loan & asset finance?

Asset finance is a funding option aimed purely at securing equipment or machinery without the large upfront cost eating into a business’ revenue. It allows you to acquire replacement equipment or new and improved machines quickly to continue the smooth operations of your business without having to remove money from other parts of the business or affecting your customers. This differs from a business loan which can be used to inject cash into any part of the business, not just to secure assets. Business loans can be used to cover cash flow during seasonal periods, employ more staff or invest in the business property. For more information on which finance option may be best for you, get in touch with the team today.

Why use asset finance? 

You can acquire assets without tying up working capital, allowing you to spread the cost over low monthly payments over periods of up to 6 years. The asset you buy will be your security, meaning that we are able to move through the application process quickly without waiting for several forms to be processed. Once everything is in place, you can let the new equipment pay for itself as you use it, rather than paying upfront in one lump sum. If you are upgrading, any old equipment can be replaced now rather than having to save and wait for an outright purchase. Payments are 100% tax deductible on lease finance agreements, while the fixed interest rate during the length of the agreement makes it easy for you to budget.

What is an example of asset finance?

You can use business asset finance in various ways to suit your company and requirements. For example, you may wish to use asset finance to secure new equipment either to meet customer demand or replace a broken or faulty unit. In this instance, you can get high-quality equipment essential to the continued growth of your business without taking a huge hit on finance with a large upfront payment. Instead, repayment on the asset finance agreement is affordable and manageable while your new piece of equipment continues to bring in revenue for the business.

What are the advantages of asset finance?

By adding new equipment you could expand capacity or your range of services, allowing you to win new contracts or serve more customers. Upgrading equipment can make you more efficient, boosting productivity or saving energy costs. Accessing your industry’s latest equipment and technology can mean you provide a better service as well as get ahead of your competition. Spreading the cost of any business investment provides an affordable way to get what you need now, unlocking your company’s potential without using up your own cash reserves or credit cards and overdrafts which reduce your ability to respond to fluctuations, emergencies, or access to credit in the future.

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General Enquiries

What are your rates?

The interest rates available to each customer vary based on a large number of factors including the trading history and credit rating of the business, the credit history of any company directors, how much money is required and what the funds are being used for. The rates for customers with an exceptional credit rating start from an annual flat rate of 5.3%.

What are the minimum and maximum amounts I can borrow? 

The amount that you are able to borrow very much depends on a combination of your own personal circumstances and the trading history of your business. Like a mortgage, finance amounts can also be affected by the size of your business. Broadly speaking we offer finance agreements from around £10,000 up to approximately £2,000,000

Isn’t it cheaper just to go to a lender direct? 

Whilst banks can offer different rates, they often reject certain type of purchase, businesses in different industries and have very strict lending criteria. At Portman we deal with a panel of over 40 lenders as well funding businesses with our own money. We have access to specialist lenders and specialist types of finance, giving a variety of options and a greater chance of success. Portman may have rates that are not available to a customer who goes direct and can also explore the whole lending market in one go, saving you time. We have access to specialist lenders that are not available to individuals and can even put together finance packages from multiple lenders. All of which gives you competitive rates, with a greater chance of acceptance.

Do you provide finance outside the UK? 

Unfortunately, Portman can only finance companies registered and operating in the UK.

How long will I be paying back the finance? 

Terms are available between 2 and 6 years. Options available to you may be dependent on the circumstances of your business, but then the final choice is up to you.

Our experts can find the right funding for you.

Find out how we can help today.

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