Why businesses are being attracted to asset finance


Every business needs access to a variety of assets to perform to its maximum potential. Whether that’s state-of-the-art plant and machinery to produce quality products or PCs for all your staff, it’s all valuable – but can come at a cost.

Expensive purchases like this are a common cause of short-term cash flow woe, and it’s often difficult to plan ahead. For instance, when a vital piece of machinery suddenly breaks, it will usually need to be replaced quickly.

Perhaps that’s why almost a third of businesses have used asset finance solutions such as hire purchase and finance leases to fund these investments, according to findings from Cambridge & Counties Bank.

Of the 29% which have done so over the past five years, 20% used it to purchase new plant or equipment. However, many others used it to access working capital after being turned down for other forms of funding, with 15% failing to extend overdraft facilities and 10% had been turned down for a loan.

So could asset finance benefit your business in a similar way?

What is asset finance?

Asset finance allows businesses to purchase plant, equipment or machinery without tying up their cash flow.

There are two main types of asset finance: hire purchase and finance leases.

The difference between the two is that, through hire purchase, you will own the asset at the end of the agreement, whereas finance leases give businesses the option of essentially borrowing the asset for a set period.

It is also possible to release working capital from existing assets through asset refinance.

Growing in popularity

Recent years have shown an impressive rise in asset finance as more and more businesses realise its benefits.

According to official figures from the Finance & Leasing Association (FLA), the asset finance market has shown a strong performance so far in 2017, with new business overall 6% higher than in the previous year.

Also, FLA calculations show that the industry financed more than 35% of UK investment in machinery, equipment and purchased software in the twelve months to June 2017 – an eight-year high.

Benefits of hire purchase

Benefits of finance leases

Benefits of asset refinance

To find out more about asset finance and how your business could benefit, download our Essential Guide to Asset Finance

As a commercial finance broker specialising in asset based finance, Hilton-Baird Financial Solutions can introduce the most suitable solution for your business. To find out more about how asset finance could help your business, call our team on 0800 9774833 or email


Some of the funders we work with

  • Lloyds Bank Commercial Finance
  • Cynergy Business Finance
  • Partnership Invoice Finance
  • InvoCap
  • ABN AMRO Commercial Finance
  • Roma Finance
  • IGF Invoice Finance
  • Accelerated Payments
  • Kriya
  • Santander Corporate & Commercial
  • Pulse Cashflow Finance
  • Ultimate Finance Group
  • Royal Bank of Scotland
  • Time Finance
  • Giant
  • Clear Factor
  • Praetura Invoice Finance
  • Haydock Finance Ltd
  • Aldermore Invoice Finance
  • Davenham Trade Finance
  • Merchant Money
  • eCapital Commercial Finance
  • Barclays
  • Berkeley Trade Finance Ltd
  • Skipton Business Finance
  • Peak Cashflow
  • 4Syte
  • Leumi ABL
  • Tradeplus24
  • Sonovate
  • Castlebridge
  • Investec
  • Optimum Finance
  • Team Factors
  • Davenham Asset Finance
  • Metro Bank SME Finance
  • Regency Factors
  • MaxCap
  • Nationwide Finance
  • Blazehill Capital
  • PNC Business Credit
  • Close Brothers Invoice Finance
  • Woodsford Tradebridge

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