Asset Finance

What is Asset Finance?

Looking to invest in new equipment, vehicles, IT, or even a shop fit-out? Asset finance lets you spread the cost over time, keeping your cash flow healthy while your business grows. With flexible options such as Hire Purchase, Finance Lease, and Operating Lease, we’ll match you with the right funding solution to suit your needs.

Hire Purchase

With Hire Purchase, you pay a deposit upfront, then make regular monthly payments (including interest) over an agreed term. Sometimes a final “balloon” payment is due at the end.

You don’t own the asset until the final payment and any purchase fee are made – but once complete, the asset is yours.

Key points:

You can usually claim capital allowances for tax purposes.
The asset may lose value during the term.
Fixed interest rates mean predictable monthly costs.

Operating Lease

With an Operating Lease, you rent the asset for a set period and return it at the end. The funder (lessor) expects the asset to still have value afterwards, so you don’t pay for the full cost of the item.

Key points:

You use the asset but never own it
Often offered by manufacturers (e.g. trucks, diggers) and may include maintenance packages.
You can’t depreciate the asset in your accounts.

Operating leases are ideal if you only need the asset for part of its life and want lower costs with no long-term commitment.

Finance Lease

With a Finance Lease, the funder (lessor) buys the asset and hires it to you (the lessee) for an agreed term, usually matching the useful life of the asset. By the end of the lease, the asset is treated as having little or no value left.

Key points:

You’re responsible for the asset, including maintenance and servicing.
You can claim depreciation in your accounts, but it doesn’t qualify for the Annual Investment Allowance.

At the end of the lease, you can:

Return the asset,
Sell it to a third party (keeping the sale proceeds after costs/settlements), or
Continue on a secondary lease at a reduced cost.

Finance leases are often chosen when you want to use an asset for its full working life without committing to own it.

Cost & Considerations

Finance agreements may be subject to arrangement fees and, where applicable, an option-to-purchase fee. For higher-value or bespoke assets, an independent valuation may be required. In the event of non-payment, the lender reserves the right to repossess the financed asset.

If you would like us to help you source Asset Finance contact us here.

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Steve Carter

Nathan Foster / Funding Friends

We worked with Nathan Foster on a complex refinancing deal. He worked tirelessly to deliver a solution, staying positive despite all the bumps in the road, and we ultimately achieved a very successful outcome. I would happily recommend Nathan and Funding Friends to others.

Ross McDonald

Expert Advice and Support from Andrew Robertson

Andrew Robertson was a source of constant support in this process. Always willing to help and advise, he was at the end of a call or email for what seemed 24/7 during this our funding application. Knowledgeable, diligent and thoughtful, he helped facilitate achieving our funding goals and helped us persevere through some tougher challenges. I would highly recommend him and Funding Friends.

Victoria Sylvester

Lisa Walls-Hester was amazing

Lisa Walls-Hester was amazing. Really supportive and clear, and helped a lot to keep everything moving along. Her credible relationships with lenders and knowledge really helped us to find the right lender to work with.

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Funding Friends is a trading style of Funding Friends Ltd, registered in England No. 12693505

Funding Friends Ltd is authorised and regulated by the FCA No. 935775

Funding Friends is a member of the NACFB registration number 28750

Funding Friends operates as a commercial finance broker and is not a lender. Any finance or products arranged through Funding Friends is entered into entirely at your choice and is at your risk, and you are advised to consult qualified professionals outside of Funding Friends to make the right decision for your needs and circumstances. Your property or other assets may be repossessed if you do not keep up repayments on any debt secured against it. Funding Friends may receive a commission or finder’s fee for effecting introductions to lenders or third parties.