Asset Finance
What is asset finance?
Secure the assets your business needs.
Asset finance is a type of funding that allows businesses to obtain the necessary equipment and assets they need while preserving cash flow.
Instead of making a substantial upfront payment, businesses can spread the cost of the asset over an agreed period, making it easier to manage finances and budget for growth. This financial solution is ideal for businesses looking to invest in high-value assets without depleting their working capital.
Why choose One Source?
At One Source Finance, we are a dedicated team of finance professionals who pride ourselves on a service-first approach to helping you grow your business by ensuring your finances are working as hard as you are.
Our approach is simple: we move fast, provide exceptional value, and specialise in securing funding even in challenging circumstances where others may struggle.
Types of asset finance
What types of finance are available?
Finance Lease.
A finance lease is a way for businesses to use equipment or machinery without buying it outright. The business rents the asset for a long time and takes care of things like maintenance and insurance. They make regular payments and might have the option to buy the asset at the end of the lease for a small price. This helps businesses access what they need without paying a large amount of money upfront.
Hire Purchase.
A hire purchase is a way to buy an asset by paying in instalments over time. The buyer gets to use the asset immediately but doesn’t own it until all payments are made. Each payment is part of the purchase price, and once the last payment is done, ownership transfers to the buyer. This method helps businesses and individuals afford expensive items by spreading the cost over a period.
Operating Lease.
An operating lease is a rental agreement for an asset where the user gets to use the asset for a specified period, typically shorter than the asset’s useful life. Unlike a finance lease, the owner retains ownership and responsibility for maintenance and other costs. The leases are usually used for assets like equipment or vehicles, offering flexibility as the user can return the asset at the end of the lease term or renew the agreement.
The benefits asset finance brings
your business.
Low, fixed costs.
Distributing the investment costs over time enables you to acquire the necessary assets without making sacrifices. With fixed rates for the entire term, planning and budgeting for growth become significantly simpler.
Boost business growth.
By spreading costs over time, your organisation can retain more cash while acquiring necessary assets to facilitate growth, bypassing the usual compromises and delays imposed by budget constraints.
Budget for the future.
Avoid unplanned spikes in your expenses by spreading costs over time. This approach allows you to plan ahead and manage future investments with greater control.
Tax benefits.
Avoid paying VAT as a lump sum upfront since it’s typically spread across your repayments (except in Hire/Lease Purchase agreements). Additionally, finance can provide 100% tax relief on both capital and interest, unlike cash.