Asset finance for vans, plant and machinery

Paying cash for a van, a digger or a new machine feels responsible. It also empties the account you need for wages, VAT and the job that pays late. Asset finance spreads the cost of equipment over its working life, so the asset starts paying for itself from the day it arrives.

What is asset finance?

Asset finance is borrowing secured against the thing you are buying. Because the lender has the asset as security, it is often easier to arrange than an unsecured loan, and the rates can be sharper. You can finance new or used equipment, from a single van to a full fleet.

We arrange asset finance for:

The main types of asset finance

Hire purchase (HP). You pay a deposit, then fixed monthly payments. Once the last payment is made, the asset is yours. Good for kit you plan to keep for years.

Finance lease. You rent the asset for most of its working life and the lender keeps ownership. Payments can be lower, and at the end you can usually extend, sell the asset on the lender's behalf or upgrade.

Operating lease and contract hire. Shorter-term rental with the option to hand the asset back. Useful when you want to swap kit regularly.

Asset refinance. Already own equipment outright? You can release cash tied up in it, then pay it back monthly. Handy when you need working capital fast.

Is asset finance better than a loan?

For buying equipment, it often is. The asset is the security, so you keep your other options open, and you can match the payments to how long the asset will earn for you. A general business loan is better when the money is for something you can't secure, like hiring or marketing.

There may also be tax advantages. The Annual Investment Allowance currently lets businesses deduct up to £1 million a year of qualifying plant and machinery, including vans and lorries (cars don't qualify). How it applies depends on the type of finance and your circumstances, so check with your accountant.

Is asset finance easy to get?

It is one of the more accessible forms of business finance, because the lender has something to fall back on. Lenders still look at your trading, your bank statements and the asset itself. Newer businesses and those with credit blips can still be funded. One logistics firm we worked with had asset finance approved within the same week, on just three months' trading.

What you'll need to apply

How it works with Flite

Tell us what you want to buy and roughly what it costs. Your Lending Expert checks it against 120+ lenders, comes back with real options, and handles the paperwork with the lender and the supplier. Many clients get a decision within 24 to 48 hours.

Flite is free to you. We are paid by the lender when your deal completes.