Finance for SMEs

Use Asset Finance For New Equipment

Asset finance is a smart way to buy new equipment as its typically cheaper than a loan. From catering equipment to commercial vehicles, buying business assets offers reduced risk to lenders, meaning they could be more likely to lend and rates are typically lower because the asset acts as security for the loan.

Asset finance typically takes 3 forms: hire purchase, which involves a larger deposit and paying the VAT upfront but guarantees an ownership option, lease finance, where VAT is spread across the term, at the end of which you can continue leasing or return the items, or refinance whereby recently purchased items are sold back to a lender, releasing cash into your business, with a finance agreement for monthly payments over a fixed term.

Asset finance can be used to spread the cost of a huge variety of commercial equipment: technology, furniture, machinery, vehicles, and any type of business equipment are likely to qualify.

Eligible For Tax Benefits

Hire Purchase – often qualifies for full capital expensing; deduct the asset value from you company profits and pay less tax.

Lease Finance – often the whole or part of your monthly payment can be deducted from your balance sheet so you pay less tax.

We always advise talking to your accountant regarding potential tax benefits.