Funding Bay Blog

Funding Bay’s guide to Asset Finance

Asset finance is the practice of using a company’s balance sheet assets (such as investments or inventory) as a security to borrow money or take out a loan against what you already own. It can provide a secure and easy way of getting working capital for your business.

Various things can be offered as collateral, from inventory, machinery and even buildings. For example, a transport company may use its vehicles as an asset to secure finance against. The amount loaned will usually depend on the value of these assets which the finance is secured against.

For SMEs, there is often a lot of scope to negotiate payment options. During the COVID-19 crisis, this has been invaluable for many businesses, particularly for those in the hospitality sector. Asset financiers can support these businesses by helping their business leaders to gain access to vital infrastructure.

Asset financing is an exceptionally valuable tool, which many SMEs should look towards; especially as they rebuild their businesses over the coming decade

Funding Bay’s Top Asset Finance Lenders:

There are plenty of lenders out there for you to choose from. According to the Funding Bay experts, the following are lenders you ought to be aware of in 2020:

1. Close Brothers

Close Brothers are recognised industry wide as a lender that can work through even the most complex of deals. Established in 1987, they are an established lender, listed on the London Stock Exchange.  As such, they have helped many UK businesses up and down the country to achieve higher levels of capital. With focus on hard assets, their key sectors include agriculture, engineering, manufacturing, construction and many more.

2.  Hampshire Trust Bank

Hampshire Trust Bank is a specialist bank that is staffed by experts. Their focus is on providing specialist business finance, specialist mortgages, and the development of finance solutions. Hampshire Trust Bank are known for award-winning savings accounts issued to both individuals and businesses. They will only lend to UK businesses, you can rest assured your money will be used to fuel the British economy.

3 . Ultimate Finance

Ultimate Finance is a lender with over twenty years’ expertise. They are efficient and personable and offer flexible funding solutions tailored to business need. Ultimate Finance make it easy for businesses to purchase the assets they need through Hire Purchase or Lease Agreements. They are fast and will usually get you a deal in 24 hours.

4. 1PM

One pm Finance provide Lease Finance and Hire Purchase to small and medium-sized enterprises (SME’s) up to £75,000. Through a hands-on, consultative approach their aim is to create a true partnership with their introducers. This relationship leads to a better understanding of exactly what works for them and enables us to tailor our offering; ensuring that the benefits we provide are right for that introducer.

There are plenty more Asset Finance lenders such as Liberty Leasing, Amicus, Kingsway, Paragon, Simply Asset Finance. Funding Bay can help you navigate through the options and find the right lender for you.

Different Types of Asset Finance

There are a range of different ways we use asset financing.  Some well-known asset finance types include:

  • Equipment Leasing – where you rent necessary equipment for your business operations.
  • Hire Purchase – where you pay items up in instalments.
  • Finance Leases – where you sell a finance company your asset to raise capital.
  • Operating Leases – where you can use an asset without buying it or renting it, allowing you to prevent recording the item on your balance sheets.
  • Asset Refinancing – where you use an asset as a secure loan and repay over a fixed period.
Funding Bay:

For further help and guidance, the experts at Funding Bay will be able to find you an asset finance lender tailored exactly to your business needs.

Asset Finance Calculator

When you use our free asset finance calculator, you will find accurate pricing structures that are designed to show you how much loan you can afford

See funding options

Further Reading