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Frequently Asked Questions

What is an example of asset finance?

An example of asset finance is when a business leases a machine, such as a milling machine, from an asset finance company. This loan is “secured” against the purchased or leased asset and if the business fails to make repayments, the lender can repossess the asset. Asset finance is a great way for businesses to acquire the necessary machinery without investing large amounts of capital upfront.

What are the different types of asset finance?

Asset finance can come in many forms, such as leasing, hire purchase agreements, or loan agreements. Leasing is when a business rents the asset for an agreed period of time and then returns it to the lender. A hire purchase agreement gives the business more ownership of the asset after they make payments on it over a set period of time. Finally, a loan agreement provides funds upfront to buy an asset and then requires regular repayments until the loan is repaid.

At Equipment Finance, we offer asset leasing finance only. 

What is asset finance and leasing?

Asset financing and leasing is a type of business finance that allows business owners to purchase or lease assets such as machinery, vehicles or other equipment. Instead of paying the full upfront for such assets, you can spread the cost over an agreed period of time with fixed payments. The key feature of asset finance is that the asset being financed is used as collateral for the loan, which means that if you default on the loan, the lender can seize the asset.

What is the difference between loan and asset finance?

A loan is a lump sum of money that you borrow, while asset finance involves the use of an asset or equipment as collateral for the loan. With asset finance, the lender has the right to seize the asset if payments are not made on time. Loans also tend to have higher interest rates than asset finance because they do not rely on any form of physical collateral. Asset finance is usually more affordable and suitable for businesses that need large pieces of equipment but don’t have the upfront cash to purchase it.