Spread the cost of:
What is asset finance?
Asset finance, or equipment finance, is a form of business funding that allows you to spread the cost of new equipment. It typically attracts better interest rates than an unsecured business loan because the finance is secured against the purchase, meaning less risk for a lender.
It is possible to finance anything from furniture to CCTV, vehicles to machinery. For a business such as a pub, it is possible to finance an interior or guest room renovation, new landscaping, or commercial catering equipment.
Is asset finance expensive?
Interest rates for asset finance vary considerably from business to business. Individual circumstances, credit history, business performance, the ratio of turnover to proposed borrowing and the type of asset purchased can all affect the rate. Portman will approach a selection of funders on your behalf and choose from multiple providers. We then find a single deal or combination of deals that most closely match your business requirements.
2 types of asset finance: Lease and Hire Purchase
Hire purchases usually require the VAT to be paid upfront and an initial deposit. At the end of the term, the customer will buy the asset through a nominal fee or balloon payment, depending on the chosen option.
A hire purchase is, as the name suggests, a purchase. This means only interest payments can be deducted from company profits, but capital depreciation can be applied and capital allowance tax benefits can usually be claimed.
Lease finance is a rental agreement, so the payments can normally be deducted from company profits before calculating tax.
With lease finance, deposits are not usually necessary. The interest and VAT amounts are included in the monthly fee. At the end of the term, the customer can keep renting or give the item back to the lender.
In both instances a monthly payment is paid to a lender each month over a defined term in return for the use of an asset.
Please seek professional tax advice before deciding which is best for you.
Benefits of asset finance
- Buy what you need now
- Invest in new machinery, equipment and vehicles
- Enable business growth
- Spread your costs with fixed monthly payments
- Potential tax advantages
- Avoid price inflation
- Secure fixed competitive rates
Why Portman Financial Services?
Portman Financial Services is focused on serving the needs of sole traders and small partnerships. This dedicated business is part of the Portman Finance Group, which can draw on over 15 years experience securing funds for over 12,000 UK SMEs, raising £1bn in funding. Whatever industry you are in and whatever funding you are looking for our experts can help.
- We can help with finance for most types of assets and purposes
- We take time to understand your business and secure funding that best meets your goals
- We will do our best to help even if you don’t have a strong credit history
- You will have one point of contact from start to end
- If you need funds quickly, we can sometimes release funds within hours
A very straight forward, and super speedy, service. We were assigned to Andrew and he really could not have be more professional and helpful. He took time to understand what we were looking for and based on that came up with the best possible route. Highly recommend!!Lottie Elmehagen
Worked hard to find the right deal
Rob worked hard to find the right product for me and get everything in place. He gave some good advice with regards to the products on the market. Very happy with the service and the regular updates.Tony Lewis
Simple process with quick turnaround
Portman, and Jack in particular, were easy to deal with and helped with some medium term funding requirements. The whole process was fairly straightforward and needed little work on our part. Definitely recommend.Mel Wright
Excellent service from Portman
I have used Portman Asset Finance before and I was pleased with the service I received the first time. When I contact them this time I spoke to Daniel Cooper who was really helpful and kept to his word and promises. I can not fault the service I received and I would highly recommend them. Much better than HSBC who I bank with.Ross Wilkins
What can be financed?
We can fund almost any sort of asset, be it a traditional ‘hard’ asset such as machinery, tractors, forklifts and vans, to more ‘soft’ assets such as IT software, office supplies, gym equipment and furniture.
We’re able to finance assets in almost any industry, not just the ones listed on this site, so whatever asset you need to move your business forward just contact us and we’ll be happy to help.
I thought finance was just for people who can’t afford to buy?
On the contrary, asset finance is designed to spread costs over a period of time, whilst your new equipment generates revenue. Using your business’ cash or credit card and buying outright can mean that there’s no free cash for emergencies or to cover fluctuations in demand. Using finance helps even out the monthly budget and choosing a lease finance or hire purchase deal allows you to treat tax in different ways which may suit your business better.
Finance allows you to get what you need now, rather than waiting to buy outright, this helps avoid inflation, as you buy at today’s prices and means you have use of the asset immediately to help grow your business.
How long will I be paying back the finance?
Terms are available for up to 6 years. Options available to you may be dependent on the circumstances of your business or the asset being financed, but then the final choice is up to you.
Do you offer seasonal payment terms?
Yes, where there is a material and predictable seasonal fluctuation in trade, it is possible to arrange a tailored finance agreement where the monthly payments reflect the seasonality of the business’ income. Whilst this is not a typical ‘whole market’ product, where it is required by our customers we do have access to lenders where this type of finance can be arranged.
What are the minimum and maximum amounts I can borrow?
The amount that you are able to borrow very much depends on a combination of the current and historic trade of your business and, depending on the strength of your business, your own personal circumstances. Our customers typically obtain finance between £10,000 and £2,000,000.