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. 

“Cubby Construction is a client of Mulberry Asset Finance and have always found the team to be obliging, highly efficient and willing to go that extra mile in order to help us achieve our goals.”

John Cubby, Managing Director, Cubby Construction Ltd

“A & H CARLISLE LTD have used Mulberry Asset Finance since 2012 and I can’t speak highly enough of Mike and his team, they have helped our business grow and their knowledge of a customer needs is impressive. They are always competitive and quick to react to our needs. I wish Mulberry Asset Finance continued success and hope to do business together for many years to come.”

Alan Falder, Managing Director, A & H Carlisle 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

“Dundee Tyres Ltd is a tyre recycling company based in Carlisle, we needed a new machine to continue our expansion and Mike Robinson from Mulberry Asset Finance was on hand to assist. Our needs were specific and complex as the machine was sourced from overseas and was bespoke to our needs. The purchase went smoothly, and I would not hesitate in recommending Mulberry Asset Finance to any other Cumbrian Businesses.”

Simon Pluckrose, Managing Director, Dundee Tyres Ltd

“Mulberry Asset Finance have helped significantly with the growth of our Artisan Bakery over the past six years. In the early stages when growth and access to finance is most difficult, they were able to help us acquire the equipment we needed. I am reassured that Mulberry Asset Finance will always get us the best deal without any fuss, allowing us to concentrate on the business and not have to worry about funding for new assets.”

Aidan Monks, Owner, Lovingly Artisan

“D. Cain & Sons have had the pleasure in dealing with Mulberry Asset Finance for the past 10 years. We as a company have built a great relationship with Mike Robinson at Mulberry Asset Finance. Mike always goes above and beyond to provide his customers with an incredible service. D.Cain & Son would recommend Mulberry Asset Finance for all your financial enquiries.”

Darren Cain, MD, D Cain & Sons Ltd

“I have used Mulberry Asset Finance 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 Asset Finance.”

Jimmy Dickinson, Director, J Dickinson Transport Ltd

“We have worked with Mike and his team at Mulberry Asset finance for over 5 years. During this time, they have provided us with the specialist finance which has allowed us to develop and expand our Free Range Egg Production and Egg Packing business. Our recent investment in additional packing equipment has seen our Through Put ability increase and as a result, has helped our business increase its turnover by over 30%. Mike and his team are always keen to understand our business requirements and have a professional, straightforward approach which makes the whole process an efficient, cost effective source of finance. I would strongly recommend Mulberry Asset Finance’s service.”

Paul Arthur, Owner, P.S. Poultry
Funding Circle FSB Member NACFB Chamber of Commerce