Here at Newable Finance, we have a comprehensive range of financial services designed to cater to the diverse needs of businesses, one of which being Asset Finance.


What is Asset Finance?

Asset Finance loans give your business access to the equipment, vehicles and technology it needs tothrive and to grow, without compromising cashflow. Instead, the asset is financed through a lease or loan arrangement, and regular payments are made over a specified period.

There are two common methods for Asset Financing; Leasing and Loaning.

In a lease arrangement, the business essentially rents the asset from a financing company. The business pays regular lease payments over a specified period (usually monthly). At the end of the lease term, there may be options to purchase the asset outright or renew the lease.

With an Asset Finance Loan, the financing company provides funds directly to the business to purchase the asset. The business then repays the loan in instalments (including interest) over the agreed-upon period.


What is the difference between Asset Financing and Asset-Based Lending?

Asset-Based Lending involves an individual borrowing money (e.g., for a home or car), with the asset (house or vehicle) serving as collateral. If the loan defaults, the lender can seize and sell the asset.

With Asset Financing, while assets may help qualify for the loan, they are not always direct collateral. The lender may prohibit using pledged assets to secure other loans.

Asset Financing is typically used by businesses, borrowing against their existing assets (e.g., accounts receivable, inventory, machinery, buildings).


Are there different types of Asset Finance?

There are various types of Asset Finance, which play a crucial role in helping businesses acquire essential resources.

Hire Purchase:

With Hire Purchase, the business pays regular instalments to eventually own the asset outright. It’s a flexible option for acquiring assets like machinery or equipment.

The VAT is paid upfront along with any deposit. A balloon payment can be factored in as well for vehicles to reduce the repayments.

Good for: Any business that wants to spread the cost of equipment over its usable life and ultimately wants to own the asset outright. Generally used for higher-value assets such as engineering equipment and vehicles, plant, machinery and so on.


Lease Rental:

Leasing is similar to Hire Purchase in that the cost of the equipment is spread over a pre-agreed period of time, usually between 1-5 years.

Leasing is an off-balance sheet transaction and may be beneficial in terms of tax relief, offsetting the repayments against your future, taxable profits.

Repayments are fixed for the duration of the agreement so makes for ease of budgeting.

Good for: Any business that wants to spread the cost of equipment over its usable life but is less concerned over ownership.


Contract Hire:

Commonly used for vehicles, Contract Hire involves leasing an asset for a fixed term. The business pays regular rentals and returns the asset at the end of the contract.


What assets can be financed?

Nearly any valuable asset can be financed, as long as it meets a fundamental set of criteria: it must be durable, easily identifiable, movable, and saleable. Traditionally, these criteria have guided Asset Finance decisions.

However, in recent years, Asset Finance providers have expanded their horizons. They’ve ventured into specialised markets, including agriculture, renewable energy, marine, aviation, and technology. Remarkably, they’re now funding assets that were once deemed unconventional for Asset Finance.


What are the benefits of Asset Finance?

Asset Finance offers several advantages over acquiring equipment with cash or traditional forms of finance such as a business loan.

  1. Small Upfront Costs: Unlike outright purchases, Asset Finance enables businesses to obtain critical assets with minimal initial expenses. This flexibility is especially beneficial for companies looking to expand or upgrade equipment.


  1. Spreading Payments: Asset Finance sets up a predictable payment schedule over the asset’s useful life. This approach helps maintain cash flow and increases available working capital for the business.


  1. Little or no security: In most cases, the asset being funded is enough security for the lender. You are rarely expected to provide personal guarantees, but it is quite common for newer start businesses.


Asset Finance in all its forms is great tool for any business looking to expand or improve its infrastructure.


What is Asset Refinance?

Asset Refinancing offers an advantage by allowing you to retain usage of the asset while simultaneously injecting capital directly into your business.

By refinancing assets you already own, you gain the flexibility to fund a wide range of projects that might not easily qualify for financing through other methods. These could include acquisitions, buyouts, or workplace improvements.


About Newable

Here at Newable, we have a team of experienced brokers who can guide you through the process of securing funding for your business needs. Whether it’s purchasing new machinery, vehicles, or equipment, our brokers work closely with a diverse panel of over 60 lenders to find tailored solutions.

For over 4 decades, Newable has been supporting thousands of businesses every year through the provision of MoneyAdvice and Workspace. An employee-owned business with a commitment to creating positive impact in all that we do, our team are on hand to help your business today.

Find out more about how Newable can help you and your business.


Newable Commercial Finance Limited trading as Newable Finance is registered in England and Wales. Registration number: 07474588. Newable Commercial Finance is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register FRN 723703 | Data Protection number: Z6663758. Newable Commercial Finance is a finance broker, not a lender. Not all products offered by Newable Commercial Finance are regulated by the Financial Conduct Authority