Asset finance is a flexible funding solution that lets UK businesses acquire essential equipment, machinery, vehicles and technology without paying the full cost upfront. Instead, the cost is spread across agreed instalments over a fixed term — preserving working capital while giving your business access to the assets it needs to operate and grow. As an FCA-authorised credit broker, Percy Finance works with a trusted panel of UK lenders to arrange tailored asset finance from across a wide range of industries and asset types.

From construction machinery to IT hardware — if it’s a tangible business asset, we can likely finance it.

We work with businesses across a wide range of sectors, from sole traders to established SMEs.

Asset finance comes in several structures, each suited to different business needs. The right option depends on whether you want to own the asset, how you want to manage the balance sheet, and what your cash flow and tax position looks like. Here’s a plain-English guide to the four main types.

With Hire Purchase, you pay a deposit followed by fixed monthly instalments. At the end of the term — and after a small option-to-purchase fee — you own the asset outright. Hire Purchase suits businesses that want to own the asset eventually and benefit from capital allowances.

A Finance Lease lets your business use the asset in exchange for fixed monthly rentals, typically over 2–5 years. You don’t own the asset, but you get full use of it and can usually continue using it at a reduced rate after the primary term. Finance Lease keeps costs predictable and is often VAT-efficient.

Operating Lease is essentially a long-term rental. You pay for the use of the asset over an agreed period, then return it at the end. Because the asset stays off your balance sheet, Operating Lease can be useful for businesses that want newer equipment regularly without ownership obligations.

Contract Hire is a form of Operating Lease commonly used for vehicles. You pay fixed monthly rentals that typically include maintenance, road tax and servicing, and you hand the vehicle back at the end of the term. Contract Hire is popular with fleets and companies that want all-inclusive motoring costs.

Asset finance offers several advantages over paying cash upfront or taking out a traditional loan. Key benefits include:

• Preserve working capital. Keep cash in the business for day-to-day operations, payroll and growth.
• Spread the cost. Fixed monthly payments make budgeting predictable and remove large capital outlays.
• Access newer equipment. Upgrade to more efficient, productive assets sooner than you could afford outright.
• Potential tax efficiency. Depending on the structure, payments may be offset against taxable profit, and you may be able to claim capital allowances (including the Annual Investment Allowance). Tax treatment depends on your circumstances — consult your accountant.
• Ownership options. Choose between structures where you own the asset at the end or hand it back.
• Balance sheet flexibility. Some structures keep the asset off your balance sheet, improving key financial ratios.

Three straightforward steps — from application to funds in your account.