Asset finance is a form of business funding that allows a company to acquire or use an asset—such as plant, equipment, vehicles, or technology—without paying the full purchase price upfront. Instead, the cost is spread across regular repayments over an agreed term, typically between one and seven years.

For UK businesses, this means capital expenditure becomes predictable and manageable. Rather than depleting cash reserves or exhausting a bank overdraft facility, you preserve working capital while still benefiting from the asset immediately.

Asset finance is available to a wide range of businesses — from sole traders and start-ups through to large corporates — and covers an equally wide range of assets, from commercial vehicles and construction equipment to medical devices, catering equipment, and high-value technology.

Hire purchase (HP) — You pay a deposit followed by fixed monthly instalments. Once all payments are complete, ownership of the asset transfers to you. HP is a popular choice for businesses that want to own what they’re paying for, particularly for long-life assets such as machinery or commercial vehicles.

Finance lease — The lender purchases the asset and leases it to your business for an agreed term. You make regular rental payments and use the asset fully, but the lender retains legal ownership throughout. At the end of the term, you may have the option to continue leasing or sell the asset on the lender’s behalf.

Operating lease — Similar to a finance lease, but typically shorter in duration. The lender retains a greater proportion of the residual value risk. Operating leases work well for assets that are likely to become obsolete quickly, such as IT equipment or certain vehicles, as they allow businesses to upgrade regularly without being tied to an asset long-term.

Sale and HP back / refinancing — If your business already owns assets outright, you can sell them to a funder and lease or hire-purchase them back. This releases the equity that is currently sitting idle on your balance sheet and converts it into working capital, without losing use of the asset itself. We covered this in detail in our recent guide to Sale & HP Back Finance.

Asset finance is available to most UK businesses, including limited companies, partnerships, sole traders, and PLCs. Lenders will typically assess the creditworthiness of your business, the nature of the asset being financed, and in some cases the directors’ personal credit history.

Start-ups and businesses with limited trading history are not automatically excluded — specialist lenders on our panel specifically cater for younger businesses or those with more complex financial profiles.

Going directly to a single lender means you only see one set of criteria and one pricing structure. As an independent asset finance broker, Percy Finance works with a broad panel of lenders — from high-street banks and challenger lenders to specialist niche funders — which means your application is matched to the most appropriate option available in the market.

We also handle the process from start to finish: understanding your requirements, preparing your application, negotiating terms, and managing the paperwork. Whether you’re looking for asset finance, vehicle finance, business loans, or refinancing solutions, we work in your interest to secure the right deal.

The process starts with a no-obligation conversation — there’s no cost to you for exploring your options and no impact on your credit file from an initial enquiry.

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