Asset Finance Guides
The structures first, then the specialist asset classes where the valuation conventions and the legal mechanisms change completely.
Asset finance is lending secured on the thing you are buying rather than on property or on the business balance sheet. That makes it available to businesses that would struggle for an unsecured loan, and it makes the asset itself, its age, its residual value and whether there is an active second-hand market, as important to the pricing as your credit profile.
Asset Finance rate guides
- Aircraft Finance Rates5.5%-12% APR
- Asset Finance Rates5.0%-9.5% APR
- Classic Car Finance Rates5.5%-8.5% APR
- Crane Finance Rates5.0%-7.5% APR
- Finance Lease Rates5.5%-9.5%
- HGV Finance Rates5.5%-8.0% APR
- Hire Purchase Rates5.5%-9.5% APR
- Marine Finance Rates5.0%-8.0% APR
- Motorhome Finance Rates5.0%-7.5% APR
- Supercar Finance Rates5.5%-8.5% APR
Structure first
Hire purchase means you own the asset at the end and can claim capital allowances from year one. A finance lease means the lender keeps title and you rent it, with payments treated as revenue expenditure.
The choice affects the accounting and the tax treatment as much as the monthly cost. The HP versus finance lease guide covers the practical differences with worked figures.
Specialist assets
Marine, aviation, supercars and classic cars each have their own lender panels, their own valuation conventions and their own legal mechanisms. A CAA aircraft mortgage and a marine mortgage are nothing like a car HP agreement.
VAT-paid status on a yacht and agreed-value on a classic car are both capable of costing tens of thousands if got wrong. Those guides are grouped below.
Asset Finance guides in full
- Aircraft Finance Deposit Guide
- Aircraft Finance for First-Time Buyers and New Pilots
- Aircraft Finance for Flying Clubs
- Aircraft Finance: How It Works
- Asset Finance for New Businesses and Start-Ups
- Asset Finance vs Business Loan: Which Is Right?
- CAA Aircraft Mortgage: How It Works
- Classic Car Finance Guide
- Financing a Supercar Through Your Company
- Hire Purchase vs Finance Lease: The Real Differences
- How Much Deposit Do I Need for Asset Finance?
- HP vs PCP vs Lease Purchase for Supercars
- Marine Mortgage: Complete Guide
- Sale & Leaseback: Complete Guide
- Supercar Finance Deposit Guide
- Supercar Finance for Self-Employed Buyers
- Supercar Finance: How It Works
- VAT on Yacht Finance
- Yacht Finance: How It Works
Frequently asked questions
What deposit do I need for asset finance?
Typically 10% to 20% on standard business assets with a clear second-hand market, and nil deposit is available to established businesses on new equipment from a recognised manufacturer. Specialist assets such as aircraft and yachts start at 20% to 30% and rise with the age of the asset.
Hire purchase or lease - which is better for tax?
It depends on whether you want the capital allowance or the deduction. Hire purchase puts the asset on your balance sheet and lets you claim capital allowances, potentially full expensing, from year one. A finance lease keeps it off and the rentals are deductible against profit as they are paid. Ask your accountant which suits this year's position.
Can a new business get asset finance?
Yes, and more easily than it can get an unsecured loan, because the asset is the security. Expect a larger deposit, typically 20% to 30%, and a director's guarantee. A recognised asset with a strong resale market does most of the work.
What assets can be financed?
Anything with a serial number, an identifiable value and a resale market: plant and machinery, commercial vehicles, agricultural equipment, medical and dental equipment, IT and telecoms, catering and brewery equipment, aircraft, vessels and prestige cars. Soft assets with little resale value are harder and price higher.
How does sale and leaseback work?
You sell an asset you already own outright to a funder and lease it back, releasing the capital while continuing to use it. It suits businesses with unencumbered plant that need working capital. The asset must be owned outright or the existing finance settled from the proceeds.
Can I finance a used asset?
Yes. Age limits vary by asset class, commonly up to ten years at the start of the agreement and up to fifteen at the end, with classic cars and vintage aircraft treated as appreciating assets on their own terms. Older assets need a bigger deposit and a shorter term.
Get terms on the asset
Send the asset, the price and the age, plus a line on the business, and we will come back the same working day with structures, rates and what the monthly cost actually looks like.