What is Asset Finance?

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What is asset finance?

Most businesses rely on some kind of equipment to succeed, whether it’s vehicles, computers, machinery or something else. Asset Finance is a type of business finance that helps people to acquire such assets without having to pay for the total cost of the item upfront. Using asset finance can benefit business cash-flow, because cash remains in the business, instead of losing it all in a purchase.

The process of asset finance is straightforward. The selected finance company will pay the supplier of the asset upfront, so you can obtain the asset straight away. Then you simply pay the monthly repayment to the finance company over the agreed period.


Who owns the asset?

The  two main types of asset finance are: Lease Finance and Hire Purchase.

Lease Finance is where you pay a series of installments to the selected finance company in order to use the asset. At the end of the agreed period you would not legally own the item, however, there are usually options to continue to rent the asset or purchase. Lease financing typically demands a lower up-front deposit and/or lower monthly installments compared to Hire Purchase. Items such as computer equipment and kitchen equipment are financed in this way.

 

Hire Purchase is generally used when a business would like to ultimately own the asset outright. A deposit of around 10% is typically expected and the remaining cost of the item is spread into manageable monthly payments. At the end of the agreement you have the option to purchase the asset outright, for a small nominal payment.

The ‘asset’ in an asset finance agreement acts as security for the funder and is theirs until the completion of the arrangement and any final fees for the asset has been paid.


Businesses can also use another type of Asset Finance to release the cash that’s tied up in the assets that they already own, this is called Refinance.

Using Refinance is a way of releasing capital that is already tied up in existing business assets. The money released from such assets can be used for a range of purposes, such as, boosting cashflow or raising the cash for a deposits and large bills.

If you have existing assets that you already own outright, then refinance is a way to raise flexible cash for your business.

 

What if the asset is second-hand?

With so many online platforms selling used equipment, it is really common to want to buy something second-hand. We regularly find finance for second-hand equipment, vehicles and machinery.

 

How quickly can I obtain Asset Finance?

We make sure everything is done properly, and the time scales are dependent on your circumstances and how long it takes to get all the necessary paperwork. However, when everything has been quickly made available to us, we have been able to arrange asset finance within one week.


Learn More...

Alternative finance solutions such as Asset Finance is becoming increasingly popular for businesses in the UK. We support businesses across all industries access flexible finance for a wide range of business assets and growth. Contact one of our friendly team to discuss what options may be available to your business. 

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“I was very pleased I chose Mulberry Asset Finance to work with on my new poultry business. The whole deal was arranged quickly and, most importantly for me, they did exactly what they said they would do and on time. It is very satisfying to work with people who give you a good deal and who you can rely on.”

Jennifer Bain, Owner, J Bain Farming

“I have used Mulberry Transport for ten years. They provide an excellent service for my business and I can access finance to buy the various wagons, machinery and other equipment that I need to run my business. Finance is agreed and arranged within one week, I highly recommend Mulberry Transport.”

Jimmy Dickinson, Director, J Dickinson Transport Ltd

“Mulberry Asset Finance have looked after my business loan and finance requirements for quite a few years now - and I trust them implicitly to find me the best deal they can, in the shortest time and with the least amount of hassle to myself. We've financed whole pub refurbishments through to small kitchen equipment and many things in between. There has never been a hitch or a delay and everything is conducted with the utmost professionalism and with a genuine interest in my business. I really can't recommend Mulberry Asset Finance highly enough... ”

Paul Spencer, MD, The Plough Inn at Lupton

“I am always grateful for the honest advice that I receive from Mike Robinson at Mulberry Asset Finance & his straightforward approach. It is refreshing to deal with a company that can communicate clearly & who genuinely wants to do the right thing for my business. I will definitely use Mulberry Asset Finance again & I highly recommend their services.”

Scott Burton, MD, Scott Burton Timber Harvesting

“Mike and his team are like having your own finance department. I've called out of hours on occasions for advice, very helpful when you're on the move. Always keen on rates and made to fit in with the business. Thanks again Mike and his team.”

Dave Greenbank, Managing Director, Greenbank Crane Services

“Mulberry Leisure played a key part in arranging asset finance for our capital equipment spend during a large and daunting business expansion. The Mulberry team took the time to visit and understand our needs, then provide a range of finance options to meet our budgets. We look forward to working with Mulberry Leisure in the coming years.”

Paul Reynolds, Owner, The Traddock

“We have used Mulberry asset finance on a couple of occasions as we continue to invest in processing equipment for our company, we have always been more than happy with the service provided by Mike and the team. The process is always hassle free and Mike is always in contact throughout. We will definitely be using Mulberry again in the future.”

James Hill, Director, Enviro-metals Lancaster Ltd

“I use Mulberry Asset Finance because I know that they will look at my needs and efficiently advise me of the best options available for my business. Always my first choice.”

Peter Fryer, Managing Director, English Lakes Ice Creams Ltd
Funding Circle FSB Member NACFB Chamber of Commerce

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