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Asset Finance · Speed & Process

The Asset Finance 100.
Speed & Process

Focus: Timelines, applications, and the legal process.

19+Questions
100%Expert Answers
FCARegulated
Can I use asset finance for intangible assets, like software?
TL;DR Asset finance typically covers tangible assets, but specialised IP lending and SaaS finance can help fund software, licenses, and other intangible assets in the UK.
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What is operating lease vs finance lease in asset finance?
TL;DR Understand the core differences between operating leases and finance leases in UK asset finance. Learn about accounting treatments, tax implications, and ownership rights for your business.
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What happens if the asset is damaged or destroyed during the finance term?
TL;DR If your secured asset is damaged during the finance term, insurance is critical. Learn about your obligations, the role of Minimum Insured Value (MIP), and how repayments continue after a loss event.
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What is an asset finance balloon payment?
TL;DR Understand asset finance balloon payments in the UK. We explain how this final, large lump sum affects Hire Purchase (HP) and Lease agreements, the benefits, and the associated risks.
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Can I use asset finance to expand my business?
TL;DR Asset finance is a powerful tool for UK business expansion. Learn how hire purchase, leasing, and refinancing can fund essential equipment and drive growth without tying up capital.
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What is the difference between asset refinancing and traditional loans?
TL;DR Asset refinancing uses existing business assets (equipment, vehicles, property) as security to raise capital. We explain the key differences between this approach and standard traditional loans for UK businesses.
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How does asset finance affect my company’s balance sheet?
TL;DR Learn how asset finance impacts your company's financial statements. We explain the difference between finance leases and operating leases and their specific treatment on the balance sheet under UK accounting rules (IFRS 16).
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How does asset finance help with budgeting and forecasting?
TL;DR Asset finance offers predictable monthly costs, making it easier for businesses to budget and forecast capital expenditure without draining working capital. Learn how hire purchase and leasing improve financial planning.
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What is off-balance-sheet financing in asset finance?
TL;DR Discover what off-balance-sheet financing means in UK asset finance. Learn how companies use operating leases and special purpose entities to manage liabilities and improve financial ratios.
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Can I use asset finance to reduce capital expenditure?
TL;DR Asset finance allows UK businesses to acquire essential equipment without massive upfront costs, helping to significantly reduce capital expenditure (CapEx). Learn how leasing and hire purchase spread the cost.
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How does asset finance support sustainability goals?
TL;DR Learn how asset finance, including leasing and HP, enables UK businesses to invest in energy-efficient equipment, supporting net-zero targets and driving corporate sustainability initiatives.
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What sectors commonly use asset finance in the UK?
TL;DR Discover the UK sectors heavily relying on asset finance. Learn how construction, transport, manufacturing, and agriculture acquire essential equipment without massive upfront costs.
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Can I finance vehicles through asset finance?
TL;DR Asset finance is ideal for funding vehicles in the UK. We explore how Hire Purchase, PCP, and Leasing work, their risks, and the application process for businesses and individuals.
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What is equipment leasing?
TL;DR Equipment leasing allows businesses to acquire necessary assets without large upfront costs. Learn how equipment leasing works in the UK, the different types (finance vs operating), and the key benefits and risks involved.
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Is insurance required for asset finance?
TL;DR Wondering if insurance is required for asset finance agreements in the UK? Learn about mandatory requirements, voluntary covers like GAP insurance, and how lenders protect their investments in HP or leasing agreements.
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What is the role of depreciation in asset finance agreements?
TL;DR Understand how depreciation impacts asset finance, including hire purchase, leasing, and tax relief for UK businesses. Learn about residual value and accounting implications.
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How does hire purchase work?
TL;DR Discover how hire purchase (HP) agreements work in the UK. Learn about the structure, deposits, monthly payments, ownership transfer, and key consumer protections, ensuring you understand the risks.
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What is an operating lease?
TL;DR Discover what an operating lease is, how it works, and its impact on UK business accounts. Learn the key differences between operating and finance leases.
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What are the benefits of using asset finance?
TL;DR Asset finance offers flexible ways for UK businesses to acquire essential equipment without massive upfront capital expenditure. Explore how it aids cash flow, provides tax efficiency, and enhances business growth.
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Promise Money is a broker not a lender. Therefore we offer lenders representing the whole of market for mortgages, secured loans, bridging finance, commercial mortgages and development finance. These loans are secured on property and subject to the borrowers status. We may receive commissions that will vary depending on the lender, product, or other permissable factors. The nature of any commission will be confirmed to you before you proceed.

More than 50% of borrowers receive offers better than our representative examples

The %APR rate you will be offered is dependent on your personal circumstances.

Mortgages and Remortgages

Representative example

Borrow £270,000 over 300 months at 7.1% APRC representative at a fixed rate of 4.79% for 60 months at £1,539.39 per month and thereafter 240 instalments of £2050.55 at 8.49% or the lender’s current variable rate at the time. The total charge for credit is £317,807.66 which includes £2,500 advice / processing fees and £125 application fee. Total repayable £587,807.66

Secured / Second Charge Loans

Representative example

Borrow £62,000 over 180 months at 9.9% APRC representative at a fixed rate of 7.85% for 60 months at £622.09 per month and thereafter 120 instalments of £667.54 at 9.49% or the lender’s current variable rate at the time. The total charge for credit is £55,730.20 which includes £2,660 advice / processing fees and £125 application fee. Total repayable £117,730.20

Unsecured Loans

Representative example

Annual Interest Rate (fixed) is 49.7% p.a. with a Representative 49.7% APR, based on borrowing £5,000 and repaying this over 36 monthly repayments. Monthly repayment is £243.57 with a total amount repayable of £8,768.52 which includes the total interest repayable of £3,768.52.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME

REPAYING YOUR DEBTS OVER A LONGER PERIOD CAN REDUCE YOUR PAYMENTS BUT COULD INCREASE THE TOTAL INTEREST YOU PAY. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Promise Money is a trading style of Promise Solutions Ltd – Company number 04822774
Promise Solutions, Fullard House, Neachells Lane, Wolverhampton, WV11 3QG

Authorised and regulated by the Financial Conduct Authority – Number 681423
The Financial Conduct Authority does not regulate some forms of commercial / buy-to-let mortgages

Website www.promisemoney.co.uk